What record did the US goods trade deficit hit in January?

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The US Goods Trade Deficit Reached an All-Time High in January

The US trade deficit in goods reached an unprecedented level of US$107.6 billion in January. While the deficit narrowed in February, this reduction only partially offset the significant increase seen in the preceding month, indicating that trade is likely to continue acting as a drag on economic growth during the first quarter.
Record Goods Trade Deficit in January

In January, the deficit in goods trade for the United States climbed to a record high of US$107.6 billion. This figure represents a substantial imbalance in the trade of physical goods. Although the deficit saw a slight decrease in February, falling to US$106.6 billion, the overall trend suggests ongoing challenges in the trade balance.
Export Performance in February

February saw an increase in goods exports, rising by 1.2 per cent to US$157.2 billion. However, economists suggest that this rise may be attributed to higher prices rather than an increase in the volume of goods exported, particularly as a blockade of US-Canada border crossings by Canadian truck drivers likely impacted export volumes. The largest gains were seen in consumer goods, which surged by 6.3 per cent, followed by food exports at 3.6 per cent and industrial supplies at 2.6 per cent. Conversely, motor vehicle exports declined by 3.4 per cent, a trend influenced by the ongoing global semiconductor shortage, with notable decreases also observed in capital goods and other goods.
Import Dynamics in February

Imports of goods experienced a more modest increase of 0.3 per cent in February, reaching US$263.7 billion. This growth was tempered by a significant 9.9 per cent decrease in motor vehicle imports and a 3.0 per cent drop in food imports. Despite these reductions, imports of industrial supplies and other goods saw strong growth. Increases in capital goods and consumer goods imports suggest continued robust spending by both businesses and consumers.
Impact on Economic Growth and Inventory Levels

Trade has been a negative contributor to US gross domestic product (GDP) growth for the past six consecutive quarters. This trend has been exacerbated by a shift in consumer spending from services to goods during the Covid-19 pandemic, which led to a surge in imports as domestic manufacturers grappled with supply chain disruptions. The situation could be further complicated by resurgent coronavirus infections in China and the conflict in Ukraine, which may worsen existing supply constraints. Businesses continued to rebuild inventories in February, albeit at a slower pace than at the end of 2021. Wholesale stocks rose by 2.1 per cent, and retail inventories increased by 1.1 per cent. While these inventory levels remain solid, they are unlikely to contribute significantly to GDP growth in the first quarter unless they increase at a pace exceeding that of the fourth quarter of the previous year.

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What record did the US goods trade deficit hit in January?

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