The Bureau of Economic Analysis (BEA) of the Ministry of Commerce said Thursday that the revised record $130.7 billion in January was signed from 6.1% to $122.7 million.
Reuters conducted a survey of economists, predicting the trade deficit to shrink to $123.5 billion from a reported $131.4 billion trade deficit reported in January.
President Donald Trump has released a series of tariffs since returning to the White House in January.
Trump said Wednesday that he would impose a benchmark tariff of 10% on all U.S. imports and higher tariffs on some of the country’s largest trading partners. Fitch Rating estimates that the new tariffs are the highest in more than a century. Trump’s view of tariffs as a tool to raise incomes to offset his promised tax cuts and restore a long-standing U.S. industrial base is not a common view of economists.
Imports increased sharply in February last month, and companies were eager to put goods into practice before imports remained unchanged in February. Their industrial supplies and materials fell by $4.2 billion, mainly reflecting the decline in finished metal shapes and non-monetary gold imports. Industrial supplies soared in January, which was mostly worsening in the trade deficit. The rise in supply is attributed to finished metal shapes and gold.
Consumer imports increased by $2.4 billion, reaching an all-time high, boosted by cell phones and other household items and pharmaceutical preparations. Imports of capital goods rose by $1 billion, a record high due to the increase in computers and medical equipment. But the import of civilian aircraft fell.
Service imports increased by $500 million to a record $72.2 billion. Travel services and fees using intellectual property have increased.
Exports rose 2.9% to a record $278.5 billion. Commodity exports soared 4.8% to $181.9 million. Exports of industrial supplies and materials increased by $3 billion, while non-monetary gold accounting increased. Fuel outlets fell.
Record-high capital cargo exports powered by computer accessories and civil aircraft increased by $2.7 billion. Exports of automobiles, parts and engines increased by $1.6 billion. But exports of other commodities fell by $1.3 billion. Non-methyl exports are the highest on record.
Service exports fell by $4 billion to $96.5 billion amid declines in transportation, travel and government goods and services. Financial services exports have increased.
The inflation-adjusted trade deficit fell 4.8% to $135.4 billion. While gold has calculated most of the surge in imports so far this year and will be excluded from national accounts, economic growth could brake sharply in the first quarter.
The GDP estimates for the January- to March quarter are mainly below the rate of 0.5% per year, with high contraction. The economy grew 2.4% in the October-December quarter.
