U.S. Trade Deficit Swells to Record as Goods Imports Surge

The U.S. trade deficit widened to a record in March, reflecting a surge in imports as companies relied on foreign producers to meet solid domestic demand.

The gap in goods and services trade grew 22.3% to $109.8 billion, Commerce Department data showed Wednesday. The median estimate in a Bloomberg survey of economists called for a $107.1 billion deficit. The figures aren’t adjusted for inflation.

In the first quarter, the widening of the trade deficit largely explains the economy’s worst performance since the pandemic recovery, with gross domestic product shrinking at a 1.4% annual pace. That’s because the value of ...