Trade Turmoil: U.S. Faces Record-High Deficit Amid Tariff Tensions

The U.S. trade deficit in goods reached a record high in March, fueled by imports ahead of impending tariffs, and is expected to weigh on GDP growth. Economists have downgraded growth forecasts, citing the economic repercussions of erratic tariff policies that undermine consumer confidence and economic stability.

The U.S. is grappling with its largest trade deficit on record as businesses rush to import goods ahead of President Trump's extensive tariffs. March saw the goods trade gap surge to $162.0 billion, further undermining GDP growth.

Reports suggest GDP shrank in the last quarter, with Goldman Sachs forecasting a 0.8% contraction and JPMorgan predicting a 1.75% decline. These figures are a stark contrast to the 2.4% growth seen in the previous quarter.

Consumer confidence and job openings have also taken a hit, with sharp declines reflecting the uncertainty surrounding Trump's tariff policies. Despite these challenges, layoffs remain low, providing a fragile balance in the labor market.

(With inputs from agencies.)