Businesses stockpiled imported goods in March before President Donald Trump’s♏ tariffs took hold, new trade data showed Tuesday—but economists said the surge won’t last long.

The U.S. trade deficit soared 14% to reach $140.5 billion in March, the highest level ever recorded, according to Bureau of Economic Analysis and Census Bureau data. The trade deficit nearly doubled in the first quarter compared to the same time la🌸st year. 

Increased imports drove the surge, as businesses stock𒁏ed up on foreign goods before tariffs took effect, economists said.

“Even coming after large increases in the preceding mont🗹hs, the March deficit jumped amid a rapid stocking up of high-value consumer goods, most notably pharmaceutical preparations,” wrote Moo🏅dy’s Analytics Economist Mark Hopkins. 

Trade Deficℱit Expected to Fall Once Tariffs Aไre Felt

Economists anticipated the jump after preliminary data earlier this month initially indicated that 澳洲幸运5开奖号码历史查询:imports were surging.

Following up on 澳洲幸运5开奖号码历史查询:his campaign promise, Trump has instituted a 澳洲幸运5开奖号码历史查询:series of tariffs on foreign imports, which are expected to push inflation higher and 澳洲幸运5开奖号码历史查询:weaken U.S. trade. Many U.S. tariffs weren’t scheduled to take effect until April, and some were postponed until even later as 澳洲幸运5开奖号码历史查询:negotiations take place. 

“This gives businesses a bit more time to get product in ahead of tariffs, and suggests we may see a last-ditch effort in the April data. But beyond that, we expect trade to slow materially,” wrote Wells Fargo economists Shannon Grein and Tim Quinlan.

Because of the timin🐟g of tariffs, economists expect the trade deficit to drop signifiꦿcantly in the upcoming months.

“Even if tariffs are rolled back significantly in the weeks or months ahead, the large front-running that has occurred means businesses won’t need to source as much product as they unwind inventory,” the Wells Fargo note said.