By Ethan Faverino |
The U.S. trade deficit widened in March, according to analysis released earlier this week by the Joint Economic Committee based on data from the Bureau of Economic Analysis, U.S Census Bureau, Treasury Department, and Bureau of Labor Statistics.
The total trade deficit reached $60.3 billion in March, an increase of $2.53 billion from February and 3% above the 12-month average. The goods trade deficit stood at $88.71 billion up $4.09 billion from the prior month and also 3% above its 12-month average. This was partially offset by a services trade surplus of $28.41 billion, which rose $1.56 billion from February and was likewise 3% above average.
For the full 12 months through March 2026, the United States recorded a total trade deficit of $700.49 billion. This reflected a goods trade deficit of $1.03 trillion, partially offset by a services trade surplus of $331.39 billion. Total exports over the period reached $3.53 trillion, while total imports totaled $4.23 trillion.
Largest Trade Imbalances by Country
Over the trailing 12 months, the largest goods trade deficits were with Mexico ($194.42 billion, 18.96% of the total goods deficit), Vietnam ($193.35 billion, 18.86%), and Taiwan ($177.28 billion, 17.29%). Additional notable deficits occurred with China, Thailand, Ireland, Germany, Japan, South Korea, and India.
The largest goods trade surpluses were recorded with the Netherlands ($68.49 billion), United Kingdom ($47.42 billion), and Hong Kong ($40.32 billion).
Top Exports and Imports
The leading exported goods by value were civilian aircraft, engines, equipment, and parts; pharmaceutical preparations; and nonmonetary gold. Together these categories accounted for 17.54% of all U.S. goods exports over the 12-month period.
The United States exported the most to Mexico ($347.18 billion), Canada ($327.56 billion), and the United Kingdom ($109.51). These three destinations represented 34.72% of total U.S. exports.
On the import side, the top categories by value were computers; pharmaceutical preparations; and passenger cars, which together made up 19.74% of all imported goods. The largest sources of imports were Mexico ($541.61 billion), Canada ($365.62 billion), and China ($266.59 billion), accounting for 35.74% of total U.S. imports.
Import Duties Decline
In March, the U.S. collected $20.49 billion in import duties—18.40% below the 12-month average—with the average applied duty rate at 6.85%, down 2.45 percentage points from the yearly average. Over the full 12 months, calculated duties totaled $301.30 billion.
The highest duty revenues came from passenger cars, vehicle parts, and electric apparatus, with notably higher average rates applied to certain categories such as iron and steel products. China remained the top source of duty revenue.
Currency Movements and Terms of Trade
From March 2025 to March 2026, the U.S. dollar weakened against several major currencies: by 4.9% against the Chinese yuan, 6.3% against the euro, 2.2% against the British pound, and 11.9% against the Mexican peso. It strengthened 6.1% against the Japanese yen.
A stronger dollar typically improves U.S. terms of trade by reducing the cost of imports, allowing the country to purchase more foreign goods for the same volume of exports.
Export and Import Price Trends
Year-over-year export prices rose 5.57 percent overall, while import prices increased 5.10%. Non-fuel import prices rose 5.85%, with notable variations across categories including industrial supplies and consumer goods.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
