US trade deficit widened in February by less than forecast
The gap in goods and services trade grew 4.9% from the prior month to US$57.3 billion
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[WASHINGTON] The US trade deficit widened in February by less than forecast as both imports and exports increased.
The gap in goods and services trade grew 4.9 per cent from the prior month to US$57.3 billion, Commerce Department data showed on Thursday (Apr 2). The median estimate in a Bloomberg survey of economists called for an almost US$61 billion deficit.
Exports rose 4.2 per cent in February, driven by gold and natural gas shipments. Imports increased 4.3 per cent on more inbound shipments of computers, semiconductors and automobiles. Goods imports rose an almost one-year high.
Charges for the use of imported intellectual property also rose, which may reflect a temporary boost from broadcasting rights related to the Winter Olympics.
A year since President Donald Trump unveiled his aggressive tariff regime, the monthly swings in the US trade balance continue to reflect the erratic rollout of the policy.
With tariff rates now at the lowest level since April 2025 after the Supreme Court struck down many of his levies, a key question is whether businesses will ramp up imports or shift toward domestic production this year. Following the ruling, the White House was quick to replace some of the import duties.
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Imports have been choppy month to month even as spending to build out artificial intelligence has helped boost demand for foreign-made computer chips and other equipment.
The February trade data will help economists firm up their estimates for first-quarter gross domestic product. Before the figures, the Federal Reserve Bank of Atlanta’s GDPNow forecast indicated net exports subtracted about a quarter percentage point from first-quarter GDP – similar to the fourth quarter.
On an inflation-adjusted basis, which filters into the real GDP measurement, the merchandise trade deficit widened slightly to US$83.5 billion in February.
The US merchandise-trade deficit with China widened to US$13.1 billion. The shortfall with Mexico grew while the gap shrank with Canada to the smallest since the pandemic.
Separate data out Thursday showed applications for unemployment benefits fell to 202,000 last week, near the lowest in two years. BLOOMBERG
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