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US trade deficit widens to $44.4 billion in March on falling exports

Tuesday, 05 May 2020 5:17 PM [ Last Update: Tuesday, 05 May 2020 5:22 PM ]

Seagulls sit on a lamppost beside shipping containers stacked at the Paul W. Conley Container Terminal in Boston, Massachusetts, US, May 9, 2018. (Reuters photo)

The United States government says its exports faltered nearly 10 percent in March, taking the country’s trade deficit to over $44 billion.

The US Commerce Department reported on Tuesday a drop in the country’s imports by 6.2 percent, suggesting the novel coronavirus pandemic was upending the global flow of goods and services.

"The declines in March exports and imports were, in part, due to the impact of COVID-19, as many businesses were operating at limited capacity or ceased operations completely, and the movement of travelers across borders was restricted," the report said.

It added, the declines were, in part, due to the fallout of the coronavirus pandemic, as many businesses were operating at limited capacity or ceased operations completely.

Other data on Tuesday showed the tough measures to slow the spread of the coronavirus caused the contraction of America’s services sector in April for the first time in a decade.

The reports indicate that the US economy is sinking deeper into recession and that a sharp bounce back is not likely even as parts of the United States started to reopen.

"Trade between locked-down countries all over the globe will continue to falter in what looks like a second Great Depression and it could be years before the globalization trend reasserts itself as the world grows more cautious during this unprecedented health crisis," said Chris Rupkey, chief economist at MUFG in New York.

Wall St. tumbles as Trump threatens to impose new tariffs on China

A Wall Street selloff deepened on Friday as Trump threatened to impose new tariffs on Beijing over the coronavirus crisis, compounding fears about the pace of an economic recovery from a looming recession.

Earlier, the US said it plans to borrow a record $3 trillion in the second quarter, as coronavirus-related rescue packages blow up its budget.

The US administration has campaigned for the reopening of the economy. But, health experts warn President Donald Trump’s politically-motivated decision may cost tens of thousands of American lives.

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