Trade data came in weak yesterday, with the country-wide deficit in merchandise trade hitting $1.5B, down from a $3.1B surplus in January.

10 of 11 product categories saw a decline in exports M/M, as gains from tariff front-running reversed course.

Notably, exports of motor vehicles and parts declined nearly 9%, including a 15% drop in passenger cars and light trucks, highlighting the impact of uncertainty tariffs have injected into our auto sector.

The next few months should bring more of the same, as U.S. exports remain elevated versus pre-tariff readings.