Kathmandu. The U.S. trade deficit contracted more than analysts had expected in January, U.S. government data showed.

The trade deficit in January widened by 25.3 percent to $54.5 billion in January, according to the Ministry of Commerce.

Tariffs imposed by President Donald Trump’s swift transition since he returned to the White House last year have crippled trade flows to the world’s largest economy, even though the Supreme Court struck down a large chunk of them last month.

The figures reflect a tax system that is now outdated. Trade uncertainty still overshadows the outcome.

After the court’s decision, President Trump imposed a temporary tariff of 10 percent on various imports. But the EU pledged to abide by the Trump deal. On Wednesday, the US administration announced new research into dozens of trading partners in a bid to resurrect its old trade agenda.

Exports rose 5.5 percent to $302.1 billion, driven by industrial supplies and capital goods ranging from computers to civil aircraft. But exports of consumer goods such as medicines have retreated. Meanwhile, U.S. imports fell 0.7 percent to $356.6 billion.