The U.S. trade deficit hit a fresh record in January ahead of the Russia-Ukraine crisis, as imports of vehicles and energy supplies increased while exports fell.
The rise in imports reflected strength in U.S. consumer demand, said
Stephen Stanley,
chief economist at Amherst Pierpont. He added that the Russia-Ukraine crisis and strengthening U.S. dollar could push import totals higher in the months ahead.
The Biden administration is planning to ban Russian oil imports into the U.S. Sanctions on the Russian economy come at a time in which inflation and gas prices are already at multiyear highs, and further trade disruptions are likely to push prices higher still.
The widening of the deficit in January reflected a pickup in demand for foreign-made imports as businesses restocked…
