The deficit, the gap between what America buys from abroad and what it sells to other countries, was 5.6 per cent greater than the February gap of US$70.5 billion, the Commerce Department reported Tuesday.Imports rose 6.3 per cent to US$274.5 billion while exports increased 6.6 per cent to US$200 billion. The US imports so much more than it exports that in dollar terms, the rise in imports was greater.
Through the first three months of this year, the US trade deficit totals US$212.8 billion, up 64.2 per cent from the deficit during the same period last year, a time when the US economy was essentially shut down by the coronavirus pandemic. “Stronger US growth compared to trading partners will lead the trade deficit to grow in 2021,” said Oren Klachen, lead US economist. “US domestic demand will keep a strong pull on imports, thanks to improved health conditions, re-openings and historic fiscal expansion.”
Trump sought to narrow the trade gap by imposing tariffs on imported goods on a scale not seen since the trade wars of the 1930s that contributed to pushing the United States and the rest of the world into a Great Depression.Trump's efforts failed to alter trade imbalances and angered US allies along with competitors such as China. So far, however, the Biden administration has not rolled back the Trump policies.