The US trade deficit with global trading partners plummeted by the largest amount on record in April, according to the Commerce Department report. Imports fell 16.3% to $351 billion, while exports rose 3%. The significant decrease reversed a surge in imports that occurred before President Trump’s tariffs were announced.
The drop in imports was largely due to companies and consumers waiting for the tariffs to take effect before rushing to buy goods ahead of the deadline. Trump had initially imposed 10% duties on US imports and planned reciprocal tariffs against countries he deemed unfair. However, he later reduced the levies aimed at China after talks resumed.
The trade deficit has risen 65.7% year-to-date compared to the same period in 2024. The largest goods imbalance came from China ($19.7 billion), followed by the European Union ($17.9 billion) and Vietnam ($14.5 billion). Trump announced additional talks with China, saying a recent call with Chinese President Xi Jinping was “very good.”
Source: https://www.cnbc.com/2025/06/05/trade-deficit-fell-by-a-record-amount-in-april-as-demand-dropped-for-imports.html