The U.S. trade deficit grew to the highest level in March amid a record-setting surge of imports as businesses looked to stockpile inventories before tariffs took effect.

The U.S. trade deficit widened to a record high in March as businesses boosted imports of goods ahead of President Donald Trump's sweeping tariffs, which dragged gross domestic product into negative territory in the first quarter for the first time in three years.

Canada's trade deficit narrowed to $506 million in March, beating expectations as imports fell at a faster rate than the drop in exports, data showed on Tuesday.