Trade Deficit Swells to Record $46 Billion
May 12, 2004
Associated Press

March imports rose as U.S. economy strengthened. The trade deficit swelled to an all-time high of $46 billion in March as a stronger U.S. economy stoked Americans’ appetite for foreign-made cars, TVs and other goods.

Although imports grew faster than exports, sales of U.S. goods and services to other countries also climbed in March, to their highest level on record. This was encouraging news for U.S. manufacturers and exporters.

The trade gap reported by the Commerce Department on Wednesday was 9.1 percent bigger than the $42.1 billion deficit posted in February.

Imports of goods and services came to a record $140.7 billion in March, representing a 4.6 percent increase from the previous month. The U.S. economy’s resurgence is feeding demand for imports.

Exports, meanwhile, totaled $94.7 billion, also their best month on record. That marked a 2.6 percent advance from February and reflects in part better demand from overseas where economies also are improving.

Even though exports gained ground in March, the mushrooming trade gap and the loss of U.S. jobs have been lightening rods for Democrats who hope to use them as campaign issues against President Bush.

Since Bush took office in January 2001, factories have lost 2.74 million jobs.

View All News