In February, the U.S. trade deficit rose 4.9% to $57.3 billion, according to data released by the Bureau of Economic Analysis on Thursday. While exports climbed 4.2% to a record high of $314.8 billion, imports grew 4.3% to $372.1 billion. The data was delayed due to last year’s government shutdown.
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New trading tool for QQQ bullsThe growth in imports was primarily driven by capital goods and industrial supplies. Imports of computers and computer accessories increased by $6.9 billion month-over-month, while imports of crude oil climbed $1.1 billion.
Trade Deficit Widens as Imports Climb
Rising imports hurt gross domestic product (GDP) because they widen the trade deficit and discourage domestic growth. Onshoring production has been a major goal of President Trump, who has used tariffs as a tool to incentivize companies to bring manufacturing back to the U.S.
Meanwhile, goods exports rose by $11.5 billion from the prior month and was dominated by $8 billion of non-monetary gold. The U.S. continues to carry a multi-billion dollar trade deficit with several key trading partners, including China, Mexico, the European Union, and Vietnam.