U.S. trade deficit expanded by 22.3% to a record $109.8 billion in March
The numbers: The U.S. trade deficit leaped 22% in March and topped $100 billion for the first time ever, reflecting a big appetite among Americans for foreign goods. They’re also paying higher prices for oil and other products due to soaring inflation.
Yet trade deficits subtract from gross domestic product, the official scorecard for the economy. GDP contracted by 1.4% in the first quarter mostly because of the huge trade gap. The U.S. in March imported more oil, autos and consumer goods such as cell phones, clothes, furniture, toys and computers. U.S. exports have rebounded more slowly than imports during the pandemic, but they’ve also risen to record highs.
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