US trade deficit widens to $60.3 billion in March as imports outpace export gains

The United States’ trade deficit widened in March, signalling renewed pressure on the external balance as import demand continued to outpace export growth.

Data released by the US Census Bureau and the Bureau of Economic Analysis showed the goods and services deficit rose 4.4 per cent to $60.3 billion, up from a revised $57.8 billion in February.

Exports increased by $6.2 billion to $320.9 billion, supported largely by a surge in industrial supplies, particularly crude oil and petroleum products. However, imports rose faster, up $8.7 billion to $381.2 billion, driven by higher purchases of automobiles, consumer goods, and capital equipment.

The widening gap was primarily due to a $4.1 billion increase in the goods deficit, which expanded to $88.7 billion, even as the services surplus improved modestly by $1.6 billion to $28.4 billion.

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On the export side, outbound shipments of industrial supplies rose sharply, with crude oil exports alone jumping $2.8 billion. Agricultural exports such as soybeans also posted gains. However, services exports dipped slightly, weighed down by a decline in travel-related receipts.

Imports, meanwhile, were buoyed by strong domestic demand. Passenger car imports surged $2.8 billion, while consumer goods and computer accessories also recorded notable increases.

Despite the monthly uptick, the broader trend remains favourable. Year-to-date, the US trade deficit has narrowed significantly, down 55 per cent compared to the same period in 2025, as exports rose 12 per cent and imports declined over 9 per cent.

Country-wise, the US continued to run large trade deficits with major manufacturing hubs, including Taiwan, Vietnam, and China, while maintaining surpluses with markets such as the Netherlands and the United Kingdom.

Economists say the March data reflects a mixed picture, robust domestic demand driving imports, alongside resilient energy exports, highlighting the ongoing imbalance in global trade flows even as the overall deficit trend shows signs of improvement.