US Trade Deficit Widens in February as Imports Offset Record Exports

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The U.S. trade deficit widened in February as a rebound in imports offset strong growth in exports, which increased to a record high. The trade gap increased 4.9% to $57.3 billion, with imports rising 4.3% to $372.1 billion and exports jumping 4.2% to a record $314.8 billion. Economists expect the U.S.-Israeli war with Iran, which has led to shipping restrictions, to reduce trade volumes going forward.

Why it matters

The widening trade deficit could keep trade on track to subtract from economic growth in the first quarter, potentially slowing the overall pace of the U.S. economy. The data also highlights ongoing trade tensions and policy shifts, including the Supreme Court striking down President Trump's broad tariffs and his subsequent imposition of a new global tariff.

The details

Imports increased 4.3% to $372.1 billion in February, driven by higher imports of capital goods, industrial supplies and materials, consumer goods, and automotive vehicles. Exports jumped 4.2% to a record $314.8 billion, with industrial supplies and materials, non-petroleum goods, and services exports all reaching new highs. The goods trade deficit widened 3.0% to $84.6 billion.

• The trade data is for February 2026.
• The U.S. Supreme Court struck down President Trump's broad tariffs in February 2026.
• President Trump responded by imposing a new global tariff for up to 150 days.

What’s next

Economists expect the U.S.-Israeli war with Iran, which has led to shipping restrictions impacting goods ranging from energy products to fertilizers through the Strait of Hormuz, to reduce trade volumes going forward.