In February, the U.S. trade deficit shrank by 6.1%, totaling $122.7 billion, down from the previous month's high of $130.7 billion. This decrease was attributed to businesses pre-purchasing goods to avoid tariff-related price hikes. Economists had expected the trade deficit to decrease to $123.5 billion. President Donald Trump implemented new tariffs, including a baseline 10% tariff on all imports, which experts believe to be the highest in over a century. Trump aims to use tariffs to generate revenue, counterbalance tax cuts, and revive the declining U.S. industrial sector, a strategy not universally supported by economists. Imports remained stable at $401.1 billion in February, with goods imports decreasing by 0.2% to $328.9 billion, particularly due to reduced imports of industrial supplies and materials like finished metal shapes and nonmonetary gold. Consumer goods imports hit a record high, driven by items such as cellphones and pharmaceuticals. Capital goods imports also reached a new high, propelled by computer-related products. Service imports rose to $72.2 billion, reflecting higher travel and intellectual property charges. On the other hand, exports grew by 2.9% to a record $278.5 billion. Goods exports surged by 4.8% to $181.9 billion, led by increased exports of industrial supplies and materials, especially nonmonetary gold. Capital goods exports hit a record high, supported by computer accessories and civilian aircraft. Motor vehicle exports also rose, while other goods exports fell slightly.