The U.S. trade deficit surged 34% in January to a record $131.4 billion as companies rushed to import goods ahead of Trump’s tariffs.

Imports hit a record $401.2 billion, while exports rose 1.2%.

Trump imposed steep tariffs on Canada, Mexico, and China, prompting swift retaliation.

He temporarily exempted automakers from tariffs on Mexico and Canada, but Canada refused to lift its own retaliatory duties.

Canada’s trade surplus with the U.S. also hit a record, driven by auto and oil exports, Bloomberg has reported.

The growing deficit may weigh on Q1 GDP, with gold imports playing a significant role in trade shifts.

Written by B.C. Begley