The US trade deficit has reached its highest level to date of $74.4 billion, as the value of imports surged to a new high in March, 2021

The American trade deficit widened to a new record, as the gap in the trade in goods and services expanded to $74.4 billion in March. This is up from a revised $70.5 billion recorded in the previous month in February 2021.

The US Commerce Department, which released the latest trade data today released Tuesday reported that imports rose 6.3 per cent to a record $274.5 billion, while exports climbed 6.6 per cent to a more than one-year high to $200 billion. Demand from American consumers stuck at home during COVID-19 has been sending US imports to higher levels.

Bloomberg says ports have been overwhelmed after the sudden stoppage of trade at the start of the pandemic last year and then the rush of purchasing that followed, even as exports remain sluggish.

Automakers have cut production after a surge in orders for items such as smartphones, TVs and computers left less capacity for a stronger-than-expected rebound in vehicle demand.

President Joe Biden is proposingUS $50 billion for semiconductor manufacturing and research as part of a push to address the shortage. Carmakers are pushing for a portion of the money to be reserved for vehicle-grade chips, warning of a potential 1.3 million shortfall in car and light-duty truck production in the US this year if their industry isn’t given priority.

Soaring American lumber prices driven by construction boom

The US Commerce Department reports that with lumber prices reaching fresh records amid a construction boom and housing shortage in the US, the value of imports of the building material surged to a record $1.29 billion in March.

As a result, the merchandise-trade deficit rose to an all-time high of $91.6 billion, while the nation’s surplus in services trade eased to $17.1 billion, the lowest since August 2012.

The US goods shortfall with China widened in March to $36.9 billion on a seasonally adjusted basis, the widest since December 2018.