March US Goods Trade Deficit Hits Record $163.2 Billion, Exceeding Expectations

US Companies Rush to Import Goods and Materials Ahead of Tariff Implementation

GDP Likely to Be Revised Downward from Initial Estimates Tomorrow

The US goods trade deficit in March reached a record $162 billion (232 trillion won), driven by companies continuing to import goods ahead of tariff implementation. As a result, the US GDP for the first quarter, to be announced on the 30th local time, is expected to be significantly impacted.

On the 29th (local time), the US Department of Commerce announced that the goods trade deficit in March increased by 9.6% from February, reaching $162 billion. This figure, not adjusted for inflation, far exceeded the $147 billion anticipated by US economists.

Imports rose by 5% to a record $342.7 billion, driven by the largest increase in consumer goods. Imports of automobiles and capital goods also increased ahead of tariffs.

During the same period, exports increased by 1.2%.

Bloomberg reported that this surge in imports indicates that US companies rapidly increased imports to secure goods and materials ahead of the tariffs on steel and aluminum imposed by President Trump in March and the broader tariffs announced in early April.

The widening trade deficit, which is included in GDP calculations, suggests that the US GDP may come in lower than economists' estimates.

Economists surveyed by Bloomberg expect the US GDP to have increased by 0.3% in the first quarter, the slowest pace since 2022.

Carl Weinberg, chief economist at High Frequency Economics, stated, "The trade balance figures support the estimate that GDP will decrease by 1.1%."

Trump is overusing tariff policies as a cornerstone of his strategy to promote domestic production and eliminate the trade deficit.

The March goods trade report showed that imports of industrial materials commonly used in the production of other goods, such as metals, oil, and lumber, decreased. Imports of gold for investment purposes are also included here. A significant portion of the US trade deficit expansion earlier this year was attributed to imports of bullion. Gold for investment purposes is excluded from the US government's GDP calculations.

Guest reporter Kim Jung-ah kja@hankyung.com