The U.S. trade balance widened considerably in March to a deficit of $110 billion. The trend-widening in the trade balance throughout the pandemic is a result of a much faster recovery domestically than in many of the United States’ key trading partners. As domestic demand for goods slows this year, the era of wildly expanding trade deficits will eventually transition to one of modest narrowing.
Trade flows were robust in March. Exports rose at the fastest pace in six months, up 5.6%, but that solid gain paled in comparison to the increase in imports, which grew at nearly double that rate, up 10.3% in March. On net, these flows caused the trade balance to widen by a record amount to a record deficit of $110 billion. READ FULL ARTICLE>>