Commercial deficit in the USA hit a new high in January.

The US trade deficit hit a record high of US$131.4 billion in January, marking a 34.0% increase from the previous month’s US$98.1 billion, as reported by the Department of Commerce on Thursday.

They helped increase the deficit by predicting imports to prevent potential tariffs. The percentage change was the highest since March 2015, surpassing analysts’ expectations of a rise to US$ 127.4 billion.

This week, President Donald Trump raised tariffs on imports from Mexico and Canada by 25% and hiked rates to China to 20%.

U.S. imports rose by 10% to $401.2 billion, marking the highest level since July 2020.

US imports and exports categorized by type.

Imports of goods increased by 12.3%, reaching a historic high of $329.5 billion, fueled by a significant rise of $23.1 billion in procurement of industrial supplies and materials, particularly finished metal products. Additionally, imports of consumer goods surged by $6.0 billion.

The main features in this group were medicinal products, cell phones, and various household items.

Imports of capital goods rose by $4.6 billion, driven by a significant increase in high-end computers, computer peripherals, and telecommunications equipment.

Exports increased by 1.2% to $269.8 billion, with goods exports rising by 1.6% to $172.8 billion, boosted by a $4.2 billion increase in capital goods, particularly civil aircraft, semiconductors, computers, and civil aircraft engines.

Shipments for consumer goods increased by $1.7 billion, mainly due to the rise in pharmaceutical preparations and jewelry.

Some economists interviewed by “Reuters” forecast moderate growth in the first quarter despite the trade deficit and declining consumer spending possibly leading to a decrease in the US GDP.