The U.S. trade deficit in goods hit a record $162 billion in March, rising 10% as businesses rushed to import foreign goods ahead of Trump’s tariffs.

This surge, driven by increased imports of electronics, drugs, and clothing, is expected to drag first-quarter GDP growth down to just 0.4%, the weakest in nearly three years.

While exports rose slightly, the widening deficit may worsen if global retaliation escalates, Market Watch has reported.

Economists warn that continued trade wars could harm the U.S. economy and potentially trigger a recession.

Written by B.C. Begley