US imports surged to a record high in December, reaching $364.9 billion (£291.5 billion), a 3.5% increase from the previous month. The surge was largely driven by businesses rushing orders ahead of potential tariffs imposed by President Donald Trump.
Trump’s threat of tariffs triggered a rush among American companies to import goods, particularly from countries with significant trade deficits with the US. The US trade deficit widened to $98.4 billion, the largest in three years, as exports fell 2.6% to $266.5 billion.
Tariffs on China took effect last week, while levies on Canada and Mexico are delayed until March. Trump has vowed to impose tariffs on the EU, which has a large trade deficit with the US. Experts warn that the trade deficit may remain wide despite strong export data, citing risks of further tariffs on key trading partners.
“The jump in import volumes is likely driven by businesses trying to beat Trump’s import threats,” said Thomas Ryan of Capital Economics. The US economy is seen as near its full potential level of output, but experts caution against complacency due to the ongoing uncertainty surrounding trade policies.
Source: https://www.telegraph.co.uk/business/2025/02/05/tariffs-ftse-100-markets-latest-news-uk-china-us-trump-xi