#US

In April 2025, the U.S. trade deficit narrowed significantly, surpassing economists' expectations. The overall trade deficit decreased to $61.6 billion, down from a record $140.5 billion in March .

Specifically, the goods trade deficit contracted by 46% to $87.6 billion, the smallest since December 2023. This was primarily due to a nearly 20% drop in imports, as businesses reduced foreign orders following President Trump's announcement of higher tariffs . Exports, meanwhile, increased by 3.4% to $188.5 billion .

The narrowing deficit is expected to positively impact second-quarter GDP growth, with the Atlanta Fed revising its estimate to 3.8% from 2.2% . However, economists caution that this improvement may be temporary, as businesses might resume imports ahead of the delayed tariff implementations set for July and August.