The U.S. goods trade deficit in March hit a record high of $162.0 billion, mainly due to a surge in imports.

Taiwan • Business • 04/29 13:02
The U.S. goods trade deficit in March hit a record high of $162.0 billion, mainly due to a surge in imports.

The U.S. Department of Commerce's Census Bureau released data on April 29th, 2025, showing that the goods trade deficit in March reached a record high of $162.0 billion, an increase of $14.2 billion from February. The main reason was a surge in imports, as companies stocked up in advance to avoid potential tariffs, pushing the import value up to $342.7 billion. Exports increased to $180.8 billion, but the growth was not enough to match the increase in imports, resulting in a wider deficit. This situation reflects how trade is dragging on economic growth, with forecasts predicting a 0.4% annualized decline in GDP for the first quarter.

Key Updates

04/29 19:02

In response to Trump's tariff policies, Taiwanese electronics manufacturing giants like Inventec, Foxconn, and Wistron have strategically established factories in Texas.

Major Taiwanese electronics contract manufacturers such as Inventec, Foxconn, Wistron, Wiwynn, Quanta, and Compal have responded to the high tariff policies of former U.S. President Trump by establishing or expanding their operations in the United States, with Texas becoming the preferred location. These companies' investments reflect their focus on the U.S. market and their quick adaptability to the restructuring of the global supply chain. Texas attracts Taiwanese investment with its vast land, stable electricity supply, and low taxes, and could become a major hub for Taiwan's electronics manufacturing industry in the U.S.

04/29 17:30

The U.S. consumer confidence index dropped to its lowest point in five years, mainly due to worries about tariff policies.

The World Large Enterprises Federation reported on April 29, 2025, that the United States Consumer Confidence Index fell to 86.0 in April, the lowest since May 2020, marking the fifth consecutive month of decline. Consumers are pessimistic about the future economy, employment, and income, especially worried about the high tariffs on Chinese goods, which has become a key factor in the drop in confidence. The tariffs have caused supply chain strains and increased prices, further impacting consumer spending plans.

04/29 15:02

U.S. Treasury Secretary Yellen: The U.S.-India trade agreement is nearing completion, and negotiations with South Korea and Japan are going well.

On April 29, 2025, U.S. Treasury Secretary Scott Bessant stated that significant progress has been made in trade negotiations between the United States and India, South Korea, and Japan. The agreement with India is nearing completion and could be one of the first agreements to be signed; the framework of the agreement with South Korea is in place, but it is influenced by the elections; talks with Japan have entered a critical phase, with the G7 summit possibly playing a key role. These negotiations are occurring in the context of President Trump's "reciprocal tariffs" policy, as Asian countries actively respond to tariff pressures.

04/29 15:02

U.S. President Donald Trump has announced a new car tariff policy set to take effect in 2025, aimed at reducing the tax burden on American car manufacturers.

On April 29, 2025, President Trump of the United States announced a new automotive tariff policy to reduce the tax burden on U.S. car manufacturers. The new policy exempts car manufacturers who have already paid the 25% import tariff on complete vehicles from paying additional tariffs on steel and aluminum materials, and allows for retroactive refunds for duplicate taxes. Regarding the component tariffs effective May 3, the government will reduce the rates and offer a compensation mechanism. This move prompted a rise in Asian automotive stock prices, and General Motors delayed its earnings report in response to the policy.

04/29 15:02

Delta Air Lines Temporarily Pauses Acceptance of New Airbus Models, Reroutes via Tokyo to Bypass U.S. Tariffs.

Delta Air Lines, in order to avoid the 10% import tariff imposed by the United States on new Airbus aircraft manufactured in Europe, has strategically rerouted the newly delivered A350-900 aircraft to Tokyo Narita Airport for international routes to avoid classification by U.S. customs as a "new import." Additionally, Delta has paused the acceptance of aircraft subject to tariffs and adjusted its delivery schedule. CEO Ed Bastian stated that if the tariffs cannot be avoided, Delta will halt aircraft acceptance. Delta has also chosen aircraft models produced in Canada and the United States to avoid tariffs, maintaining a balance between fleet expansion and cost control.

04/29 13:02

The U.S. goods trade deficit in March hit a record high of $162.0 billion, mainly due to a surge in imports.

The U.S. Department of Commerce's Census Bureau released data on April 29th, 2025, showing that the goods trade deficit in March reached a record high of $162.0 billion, an increase of $14.2 billion from February. The main reason was a surge in imports, as companies stocked up in advance to avoid potential tariffs, pushing the import value up to $342.7 billion. Exports increased to $180.8 billion, but the growth was not enough to match the increase in imports, resulting in a wider deficit. This situation reflects how trade is dragging on economic growth, with forecasts predicting a 0.4% annualized decline in GDP for the first quarter.

04/29 07:04

In response to shifts in trade dynamics, the bicycle contract manufacturing factory plans to build a new factory in Vietnam by 2025 to supply Europe.

In response to changes in global trade policies and tariff pressures, the bicycle manufacturing contractor Mingxi Co., Ltd. (6804) is adjusting its production sites and shipping strategies. The company plans to establish a factory in Vietnam by mid-2025 and begin mass production by the end of 2026 to supply the European market. This move aims to reduce dependence on high-tariff markets, increase operational flexibility, and restructure the global supply chain layout.

04/29 03:06

The supply chain is cooling down, from warehouses to ports, as the rush from the US-China tariff war subsides.

The surge in orders due to the U.S. imposing high tariffs on China has cooled off, and the trend of electronics manufacturers shipping early has vanished, resulting in decreased demand for sea and air transport between China and the U.S. Shipments of products such as laptops and iPhones have slowed down, and container orders at the Port of Los Angeles have plummeted. Chinese export companies are pivoting to emerging markets and adjusting their supply chain strategies. U.S. ports and the retail sector are feeling the impact, with import volumes projected to drop by 20%.

04/29 03:06

New US Tariff Policy Sparks Price Hikes in E-commerce and Consumer Goods: Prices of Amazon and Shein Products Soar, Major Companies like Procter & Gamble Announce Price Changes

Since the implementation of the new United States tariff policy on April 9, 2025, prices on platforms like Amazon and Shein have surged. Amazon has seen an average price increase of 29% for nearly a thousand products, while Shein's beauty and health products have seen a 51% price hike. UPPAbaby strollers have experienced a 33% price increase. Procter & Gamble, Unilever, and Nestlé have announced plans to further raise their product prices in the coming months. This wave of price hikes, driven by the tariff policy, is impacting the daily lives of American consumers.

04/28 23:01

Chinese battery manufacturers have been severely impacted by high tariffs, while South Korean companies are speeding up their entry into the U.S. and European markets.

Global demand for energy storage is increasing, and Chinese battery manufacturers like CATL are facing up to 173.4% tariff pressures in the US market, hindering their market layout. South Korean companies like LG Energy Solution and SK On are expanding with policy support, filling the market void. Although Chinese companies have a cost advantage, they need to pivot towards Europe and emerging markets. US and European policies are reshaping the supply chain, prompting companies to accelerate the localization of production and technological upgrades.

Surge in Imports Drives Up Deficit

In March, the total value of U.S. goods imports reached $342.7 billion, an increase of $16.3 billion compared to February, marking an increase of approximately 5%. According to Census Bureau data, this growth was primarily due to companies importing goods in advance to avoid the U.S. government's upcoming tariff policies. Reports indicate that at the time, the Trump administration threatened to impose comprehensive tariffs on major trading partners. Although some measures were delayed, companies rushed to import goods before the end of the 90-day tariff grace period, leading to a significant increase in import volume.

Additionally, the import of non-monetary gold is also considered a factor contributing to the rise in total imports. Economists point out that such gold imports may statistically exaggerate changes in actual economic activity, potentially overstating the impact on Gross Domestic Product (GDP) growth. Since imports are a deduction item in GDP calculations, the surge in imports could pressure economic growth in the first quarter.

Moderate Export Growth

Compared to imports, U.S. goods exports in March grew at a relatively moderate pace. The total export value was $180.8 billion, an increase of $2.2 billion compared to February, marking a rise of about 1.2%. Although exports increased, the growth rate was far less than that of imports, leading to an expanded overall trade deficit.

According to data from the U.S. Census Bureau, export growth was mainly driven by increased shipments of industrial supplies and capital goods. However, the export growth was insufficient to offset the strong growth in imports, further widening the trade gap.

Historic Deficit and Economic Context

The $162 billion goods trade deficit this time is the highest monthly deficit on record for the U.S. According to Reuters, this figure reflects the negative impact of trade on economic growth in the first quarter of 2025. The Atlanta Federal Reserve predicts that if gold import and export factors are adjusted, the first-quarter GDP may see an annualized decline of 0.4%.

According to The Economic Times, the market generally expects the U.S. first-quarter GDP annualized growth rate to be only 0.3%, the lowest since the second quarter of 2022. In contrast, the GDP growth in the fourth quarter of 2024 was 2.4%. This slowdown is closely related to the widening trade deficit.

Policy Background and Corporate Behavior

The surge in imports is closely related to U.S. government trade policies. During the first quarter, the Trump administration repeatedly indicated new rounds of tariffs on China and other major trading partners. Although some measures were later delayed, companies chose to import goods in advance to avoid potential cost increases.

According to AASTOCKS, manufacturers placed large orders and moved goods into warehouses during the 90-day tariff grace period, leading to a year-on-year surge of 30.8% in March imports. This "rush to import" behavior temporarily increased total imports and put pressure on trade balance.

Official Data Summary

According to data released by the U.S. Census Bureau, the U.S. goods trade data for March 2025 is as follows:

  • Goods trade deficit: $162 billion (an increase of $14.2 billion compared to February)
  • Total goods imports: $342.7 billion (an increase of $16.3 billion compared to February)
  • Total goods exports: $180.8 billion (an increase of $2.2 billion compared to February)

These figures are preliminary estimates, and final numbers will be revised in subsequent reports.

References

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