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US goods trade deficit widens sharply in January
Shipping containers are stacked at the Port Authority of New York and New Jersey · Reuters

WASHINGTON (Reuters) - The U.S. trade deficit in goods widened sharply in January, most likely as businesses front-loaded imports ahead of tariffs, potentially positioning trade to be a drag on economic growth in the first quarter.

The goods trade gap surged 25.6% to $153.3 billion last month, the Commerce Department's Census Bureau said on Friday. Goods imports vaulted 11.9% to $325.4 billion.

President Donald Trump in his first month in office has issued a raft of tariff orders.

On Thursday, Trump said a 25% tariff on Mexican and Canadian goods would take effect on March 4, after being delayed for a month, along with an extra 10% duty on Chinese imports, on top of 10% already imposed. Other duties aimed at imported steel, aluminum and motor vehicles will either soon go into effect or are in fast-track development.

Exports rose 2.0% to $172.2 billion last month.

Trade contributed to the economy's 2.3% annualized growth rate in the fourth quarter.

(Reporting by Lucia Mutikani; Editing by Kevin Liffey)