The U.S. trade deficit grew 4.4% month-over-month to $60.3 billion in March, according to data released by the Bureau of Economic Analysis on Tuesday. The consensus analyst estimate was for a deficit of $61 billion.
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Forget margin or options. Here's how the pros trade QQQDuring the month, exports climbed 2% to $320.9 billion, driven by a $4.5 billion boost in exports of crude oil and other petroleum products. However, imports offset that with 2.3% growth, led by automotive vehicles, parts, and engines.
Iran War Drives Demand for U.S. Energy
The war in Iran has led to higher demand for U.S. energy, benefiting domestic oil and gas companies. Brent crude, the global oil benchmark, has risen by 50% since the conflict began on February 28.
Higher 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.