♦️ The US trade deficit sharply decreased in April, by a record 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 is due to a record decline in imports of 16.3%, reaching $351.0 billion in April, and imports of goods fell 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 anticipated a deficit contraction to $70 billion, and the goods trade deficit decreased 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 to catch up with import levels before Trump's tariffs, which significantly contributed to the annual decline rate of 0.2% in GDP in the last quarter.