The U.S. trade deficit widened in February as a rebound in imports offset robust export gains, which rose to a record high — a pattern that could keep trade a drag on first-quarter economic growth.
The trade gap grew 4.9 percent to $57.3 billion, the Commerce Department’s Bureau of Economic Analysis and Census Bureau said. January’s deficit was revised to $54.7 billion (previously estimated at $54.5 billion). Economists polled by Reuters had expected the deficit to reach $61.0 billion in February.
The BEA and Census Bureau are still catching up on data releases after last year’s government shutdown, and trade figures remain volatile amid shifting policy.
Challenging Federal tariff measures
In February the U.S. Supreme Court struck down President Donald Trump’s broad tariffs — measures he invoked under a law intended for national emergencies — though Trump responded by imposing a global tariff for up to 150 days. He has argued the tariffs are needed to address the trade deficit and revive domestic manufacturing, even as about 100,000 factory jobs have been lost since January 2025.
Economists also expect the U.S.-Israeli war with Iran, which has prompted shipping restrictions affecting goods from energy products to fertilizers transiting the Strait of Hormuz, to weigh on trade volumes.
Imports rose 4.3 percent to $372.1 billion in February. Goods imports increased 5.0 percent to $291.5 billion, aided by capital goods imports up $7.8 billion, largely reflecting computers, computer accessories and semiconductors — likely tied to artificial intelligence investments and data-center construction. Imports of industrial supplies and materials climbed $3.1 billion, mainly from crude oil. Consumer goods imports increased $2.2 billion, including a $1.0 billion rise in pharmaceutical preparations, while imports of automotive vehicles, parts and engines rose $1.6 billion.
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Record export growth
Exports jumped 4.2 percent to a record $314.8 billion, with goods exports surging 5.9 percent to an all-time high of $206.9 billion. Exports of industrial supplies and materials rose $10.2 billion to a record, driven by monetary gold and natural gas; non-petroleum goods exports also reached record levels.
The goods trade deficit widened 3.0 percent to $84.6 billion in February. Adjusted for inflation, the goods deficit rose $0.5 billion (0.6 percent) to $83.5 billion.
Trade subtracted from GDP growth in the fourth quarter. The Atlanta Federal Reserve forecasts first-quarter GDP growth at an annualized 1.9 percent, after the economy expanded 0.7 percent in the fourth quarter.
The goods deficit with China increased to $13.1 billion in February from $12.5 billion in January, while the shortfall with Mexico jumped $4.1 billion to $16.8 billion.
Exports of services rose $1.1 billion to a record $107.9 billion, supported by gains in travel, other business services, financial services and charges for the use of intellectual property, though exports of transport services declined.
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