US trade gaps widen in March as AI spending boosts imports
World
By
AFP
| May 06, 2026
The US trade deficit grew slightly less than expected in March, government data showed on Tuesday, as spending linked to the artificial intelligence buildout boosted imports.
But US exports of crude oil and petroleum products also jumped after war in the Middle East began on February 28 with US-Israeli strikes on Iran. This could narrow the gap in the following month, analysts said.
Oil prices have surged since Tehran’s retaliation in virtually blocking off the Strait of Hormuz, a key waterway for energy transit.
In March, the trade deficit in the world’s biggest economy widened 4.4 per cent to $60.3 billion (Sh7.8 tillion), the Commerce Department said Tuesday.
The uptick came in the month after the Supreme Court struck down a swath of President Donald Trump’s global tariffs, while businesses pushed to get refunds.
READ MORE
Vodafone to take control of UK operator
Germany firm BioNTech to cut up to 1,860 jobs as Covid jab sales drop
Ruto allocates more funds to sectors likely to win him votes in 2027
Revealed: Consumption outpacing recycling of waste
Packaged Githeri? The rise of ready-to-eat meals
Firm bets on financial inclusion to unlock boda boda sector growth
Leave Nganyas alone: They define Kenyan culture and creativity
Absa unveils Sh100bn asset finance plan
Trump has moved quickly to impose a temporary 10 per cent duty under separate authorities since, and his administration has taken steps towards rolling out more lasting levies.
The US leader’s fast-changing tariff policies after he returned to the White House last year have caused wide swings in trade flows, as firms rushed to import the goods they needed before hikes in duties.
But Tuesday’s data provides a glimpse of trade since the high court forced a shift in Trump’s tariff agenda. “The rise in imports outpaced the increase in exports, in part due to a jump in vehicle imports,” said US economist Grace Zwemmer of Oxford Economics.
“Capital goods imports, including computers, computer accessories, and semiconductors, remain strong thanks to ongoing demand for AI hardware,” she added in a note.
ING economist James Knightley told AFP: “It confirms what we saw in last week’s GDP report, that imports tied to the tech AI roll out point to sustained investment through 2026.”
The rise in consumer and auto-related imports also suggests “that the household sector remained buoyant in March.” “We will see if that remains the case in the face of higher energy costs,” he said.
The overall deficit was slightly narrower than the $60.9 billion figure expected from economist surveys by Dow Jones Newswires and The Wall Street Journal.
In March, US imports rose 2.3 per cent to $381.2 billion, with increases seen in autos and parts, alongside consumer goods. [AFP]