The Bureau of Economic Analysis released its monthly trade data for March, and despite it being the first full month of the imbroglio in the Strait of Hormuz, imports rose more than exports and the deficit surpassed the three month moving average.
The biggest takeaways from this month’s data are the continued demand for computer and telecom parts, likely for AI data centers, coupled by a surprising surge of passenger car imports from Germany, Japan and Mexico. Meanwhile, the U.S.-China trade gap continues to tighten.
The goods and services deficit for March was $60.3 billion, up 4.4% from February. Per usual, the goods deficit is much greater. In fact, the March figure of $88.71 billion was the biggest monthly deficit so far this year. It is also greater than the monthly deficits reported from August through November 2025, the first few months of the IEEPA tariffs kicking in.
For comparison, the February goods deficit was $84.62 billion. The $4 billion increase does not necessarily mean more volume. It could also mean price adjustments on globally traded commodities like fuel. The U.S. did spend more on imported fuel oil (+$724 million), crude oil (+$656 billion) and on bauxite and aluminum imports (+$436 billion combined), according to BEA.
But on the manufactured goods side, the big differences were from imports of computer accessories (+$2.04 billion more than February), likely to feed the insatiable demand for AI data centers, and a surprising jump in passenger car imports (+$2.74 billion more than February). Car makers have been saying over the last month that they need to replenish supply for their dealership networks, so this jump likely speaks to that for some big brands. Overall, passenger car imports are $41.18 billion in the first three months of 2026, down from $53.53 billion in the same period in 2025.
It really looks like another AI data center-driven import push for March. Computer accessory imports for the first three months of 2026 were valued at $48.96 billion compared to $35.67 billion in the same period last year.
Top 10 Monthly Import Drivers
These are the items that saw the biggest month-over-month increase in March. Services not included.
Item
March
February
Monthly Change
Passenger cars
$15.58 billion
$12.80 billion
+$2.78 billion
Computer accessories
$18.18 billion
$16.13 billion
+$2.04 billion
Telecom equipment
$13.05 billion
$12.17 billion
+$875 million
Industrial machinery
$7.25 billion
$6.45 billion
+$796 million
Fuel oil
$2.26 billion
$1.54 billion
+$724 million
Crude oil
$12.87 billion
$12.22 billion
+$656 million
Cell phones
$9.67 billion
$9.06 billion
+$605 million
Textile apparel
$4.67 billion
$4.15 billion
+$520 million
Electric apparatus
$8.69 billion
$8.21 billion
+$489 million
Bauxite & aluminum
$2.30 billion
$1.86 billion
+$436 million
Source: Bureau of Economic Analysis, March 2026
Some of these big jumps have occurred in the past. And these numbers are not an exact reading of trade, as some items are ill-defined.
Just as the U.S. saw big spikes in imports of certain goods, there were also big monthly drops in copper (-$313 million) and personal computers (-$2.31 billion).
The overall goods deficit for the first three months of 2026 is $255.47 billion, comparatively lower than the same period in the last two years.
The biggest trade deficit for the month was Taiwan – $19.06 billion, up around $2 billion from February. Vietnam was second at $18.97 billion, up $4.5 billion from February. Vietnam continues to pick up where China is leaving off. The China deficit continues to tighten, ending March at $9.75 billion versus $11 billion in February. Mexico is our third largest deficit in March – $18.42 billion, up roughly $3 billion from February.
Of note, U.S. imports from the European Union jumped by around $11 billion in March to come in at $48.74 billion.
“Outside of computer and AI-related imports, the trade deficit is running well below the monthly average for 2024 ($75 billion a month) or 2025 ($76 billion per month), so the tariffs are working to deter imports,” said Jeff Ferry, CPA’s chief economist emeritus. “The critical question remains whether that deterrence is leading to increased domestic production to fill the gap.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
March Imports Rise, Monthly Deficit Up 4.4% In First Month of Iran War
The Bureau of Economic Analysis released its monthly trade data for March, and despite it being the first full month of the imbroglio in the Strait of Hormuz, imports rose more than exports and the deficit surpassed the three month moving average.
The biggest takeaways from this month’s data are the continued demand for computer and telecom parts, likely for AI data centers, coupled by a surprising surge of passenger car imports from Germany, Japan and Mexico. Meanwhile, the U.S.-China trade gap continues to tighten.
The goods and services deficit for March was $60.3 billion, up 4.4% from February. Per usual, the goods deficit is much greater. In fact, the March figure of $88.71 billion was the biggest monthly deficit so far this year. It is also greater than the monthly deficits reported from August through November 2025, the first few months of the IEEPA tariffs kicking in.
For comparison, the February goods deficit was $84.62 billion. The $4 billion increase does not necessarily mean more volume. It could also mean price adjustments on globally traded commodities like fuel. The U.S. did spend more on imported fuel oil (+$724 million), crude oil (+$656 billion) and on bauxite and aluminum imports (+$436 billion combined), according to BEA.
But on the manufactured goods side, the big differences were from imports of computer accessories (+$2.04 billion more than February), likely to feed the insatiable demand for AI data centers, and a surprising jump in passenger car imports (+$2.74 billion more than February). Car makers have been saying over the last month that they need to replenish supply for their dealership networks, so this jump likely speaks to that for some big brands. Overall, passenger car imports are $41.18 billion in the first three months of 2026, down from $53.53 billion in the same period in 2025.
It really looks like another AI data center-driven import push for March. Computer accessory imports for the first three months of 2026 were valued at $48.96 billion compared to $35.67 billion in the same period last year.
Top 10 Monthly Import Drivers
These are the items that saw the biggest month-over-month increase in March. Services not included.
Item
March
February
Monthly Change
Passenger cars
$15.58 billion
$12.80 billion
+$2.78 billion
Computer accessories
$18.18 billion
$16.13 billion
+$2.04 billion
Telecom equipment
$13.05 billion
$12.17 billion
+$875 million
Industrial machinery
$7.25 billion
$6.45 billion
+$796 million
Fuel oil
$2.26 billion
$1.54 billion
+$724 million
Crude oil
$12.87 billion
$12.22 billion
+$656 million
Cell phones
$9.67 billion
$9.06 billion
+$605 million
Textile apparel
$4.67 billion
$4.15 billion
+$520 million
Electric apparatus
$8.69 billion
$8.21 billion
+$489 million
Bauxite & aluminum
$2.30 billion
$1.86 billion
+$436 million
Source: Bureau of Economic Analysis, March 2026
Some of these big jumps have occurred in the past. And these numbers are not an exact reading of trade, as some items are ill-defined.
Just as the U.S. saw big spikes in imports of certain goods, there were also big monthly drops in copper (-$313 million) and personal computers (-$2.31 billion).
The overall goods deficit for the first three months of 2026 is $255.47 billion, comparatively lower than the same period in the last two years.
The biggest trade deficit for the month was Taiwan – $19.06 billion, up around $2 billion from February. Vietnam was second at $18.97 billion, up $4.5 billion from February. Vietnam continues to pick up where China is leaving off. The China deficit continues to tighten, ending March at $9.75 billion versus $11 billion in February. Mexico is our third largest deficit in March – $18.42 billion, up roughly $3 billion from February.
Of note, U.S. imports from the European Union jumped by around $11 billion in March to come in at $48.74 billion.
“Outside of computer and AI-related imports, the trade deficit is running well below the monthly average for 2024 ($75 billion a month) or 2025 ($76 billion per month), so the tariffs are working to deter imports,” said Jeff Ferry, CPA’s chief economist emeritus. “The critical question remains whether that deterrence is leading to increased domestic production to fill the gap.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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