US import tariffs have led to a record 20% drop in monthly imports, with goods from Canada and China experiencing their lowest levels since 2021 and 2020 respectively. The Commerce Department reported that US purchases from major trade partners fell sharply, contributing to a significant decline in the trade deficit.
The decline is attributed to firms rushing products into the country earlier this year in anticipation of new taxes on imports. However, with tariffs now in effect, imports have plummeted, helping to cut the trade deficit by almost half. The collapse has led to a record low trade deficit in goods.
Experts note that while the figures suggest the impact of tariffs is being felt, they should be interpreted cautiously due to the surge in activity earlier this year. Analysts attribute the slowdown in trade to firms weighing how to respond to the new tariffs.
The data also shows that imports from certain countries such as Vietnam and Taiwan have surged, possibly due to suspended levies on their exports. Overall, US goods imports are up about 20% compared to the same period in 2024, while exports are up about 5%.
The record decline in trade deficit is a significant development, with the overall goods and services deficit in April being $61.6 billion, down from $138.3 billion in March. The US trade policy under President Trump continues to have far-reaching effects on global markets.
Source: https://www.bbc.com/news/articles/cvgqzpljx3do