Trade deficit balloons to record high in January as companies scramble to import goods to avoid tariffs

I saw a lot of ink on Dow and nasdaq and such. But didn’t see this stated much. There is a tariff reprieve but companies need their supplies so they’re stocking up. If the tariffs come to pass I don’t know how it will change. Try and find new sources takes time and shifting manufacture to US might not be cost effective no matter how high tariffs are.

With a contracting first quarter we’ll officially be in recession if it extends to second quarter. So far that seems less likely.

https://www.marketwatch.com/story/trade-deficit-soars-to-record-high-in-january-b94b5c42?&g=713ea1cb-716b-4c7a-8836-70f9e73a3ba3&mod=djem_mwnbulletin

> The U.S. international trade deficit widened 34% in January to $131.4 billion, the Commerce Department said Thursday. It’s the widest deficit going back to the start of the series in 1992.

> Imports jumped 10% to $401.2 billion in January as businesses scrambled to get ahead of new taxes on overseas goods proposed by the Trump administration. Imports were 23.1% higher than a year ago.

> The exploding trade deficit will subtract from gross domestic product because it means the U.S. is buying relatively more goods and services from foreign suppliers instead of American producers.

> Exports rose 1.2% to $269.8 billion.