The U.S. trade deficit in goods soared to a record $153 billion in January, as businesses rushed to import foreign products ahead of impending tariffs promised by Donald Trump. The sharp increase—more than 25% from December—far exceeded economists’ expectations and signaled growing concerns over supply chain disruptions.
Analysts believe the surge was driven by stockpiling of key goods, including industrial supplies, consumer products, and even gold bullion, as companies braced for levies on imports from Canada, Mexico, China, and the EU. The ports of Los Angeles and Long Beach, two of the busiest in the U.S., reported their strongest January on record, with warehouse demand spiking due to increased shipments.
As Financial Times calculations revealed, gold reserves at the New York Comex exchange jumped by $25 billion in January, as traders shifted assets from London to New York in anticipation of potential tariffs. Similarly, imports of solar panels skyrocketed, quadrupling from December to January, underscoring fears of steep duties on key goods.
Despite Trump’s push for a 25% tariff on EU products and further levies on China, corporate leaders have downplayed concerns, with some suggesting they are prepared to adjust supply chains. However, experts warn that such aggressive trade policies could pose risks to economic growth, with ING economist James Knightley cautioning that the euphoria around Trump’s economic impact “might be overplayed.”
