03:46 PM EDT, 05/06/2025 (MT Newswires) -- The US trade deficit reached a record level in March as imports surged to an all-time high, with Stifel pointing to companies front-loading imports in anticipation of President Donald Trump's reciprocal tariffs.

The goods and services deficit widened 14% to $140.5 billion from February's revised tally, the Census Bureau and the Bureau of Economic Analysis reported Tuesday. The consensus was for a gap of $137.2 billion in a survey compiled by Bloomberg.

Companies "rushed" to import goods ahead of the tariffs that were announced on April 2, Stifel said in a note to clients.

Imports rose 4.4% month on month to $418.96 billion in March, while exports ticked 0.2% higher to $278.46 billion, also a record level.

Goods imports increased to $346.75 billion from $328.94 billion led by consumer and capital goods. Goods exports grew to $183.23 billion from $181.9 billion led by industrial supplies and materials.

Last month, the Trump administration announced new tariffs on imports, including from China, but later declared a 90-day pause on certain duties for non-retaliating countries. Washington and Beijing have since been in a deadlock over tariffs.

The world's biggest economy saw a goods trade deficit of $48.31 billion with the European Union, widening from $30.88 billion in February, according to government data. The goods trade gap with Japan increased to $5.84 billion from $5.2 billion.

The trade surplus with the UK narrowed to $1.17 billion from $3.37 billion. The US' goods trade deficit with China fell to $24.80 billion from the $26.59 billion shortfall in February.

Overall services imports fell to $72.20 billion from $72.26 billion, while exports dropped to $95.23 billion from $96.10 billion, the data showed.

The US economy contracted in the March quarter, representing the first quarterly decline in three years, according to an advance estimate released last week by the government, with analysts expecting tariffs to further slow activity down later in the year.

Year-to-date, the goods and services deficit has increased almost 93% from a year earlier, with imports jumping 23% and exports advancing 5.2%, official data showed Tuesday.