U.S. exports of goods and services plunged in March by a record and imports declined by the most in 11 years as the coronavirus pandemic stymied trade and travel.
The overall gap in goods and services trade widened to US$44.4 billion from a revised US$39.8 billion in February, according to Commerce Department data released Tuesday. The median estimate of economists surveyed by Bloomberg had called for a widening to US$44.2 billion.
Exports dropped from the prior month by a record 9.6 per cent to US$187.7 billion, while imports fell 6.2 per cent to US$232.2 billion.
Declines in international travel and tourism made up a large portion of the decreases in exports and imports. Travel and transport exports dropped about US$10.1 billion, while imports fell around US$10.6 billion.
Foreign trade was already diminishing heading into the pandemic, and now, faced with supply chain disruptions, a previously incomprehensible surge in unemployment and a drop off in demand, the world’s largest economy has pulled back more dramatically. A look at the details offers a more nuanced picture of how Covid-19 is decimating trade.
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