$RVN
♦️ The U.S. trade deficit sharply decreased in April, hitting a record low of 55.5% to reach $61.6 billion, the lowest level since September 2023, compared to a deficit of $138.3 billion in March, according to the Bureau of Economic Analysis of the U.S. Department of Commerce.
♦️ This was due to a record decline in imports by 16.3%, reaching $351.0 billion in April, with goods imports falling by a record 19.9% to $277.9 billion.
♦️ This was caused by the tariffs imposed by President Donald Trump, which led to the largest recorded drop in imports, as demand for goods waned, potentially boosting economic growth during this quarter.
♦️ The data came in below expectations, as economists surveyed by Reuters had predicted the deficit would shrink to $70 billion, and the goods trade deficit fell by a record 46.2% to $87.4 billion, the lowest level since October 2023.
♦️ This comes after the trade deficit widened in the first quarter of 2025 following a surge in imports before Trump’s tariffs were imposed, which significantly contributed to the annual decline rate of 0.2% in GDP in the last quarter.
