Updated: 05-Jun-25 09:58 ET
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Updated: 05-Jun-25 09:58 ET |
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Highlights
- One thing that became crystal clear this morning is that the trade deficit plunged in April to $61.6 billion (Briefing.com consensus -$117.2 billion) from an upwardly revised deficit of $138.3 billion (from -$140.5 billion) in March.
- Exports were $8.3 billion more than March exports, but imports were $68.4 billion less than March imports.
Key Factors
- Exports of industrial supplies and materials increased by $10.4 billion.
- Exports of capital goods increased by $1.0 billion.
- Exports of automotive vehicles, parts, and engines decreased by $3.3 billion.
- Imports of consumer goods decreased by $33.0 billion.
- Imports of industrial supplies and materials decreased by $23.3 billion.
- Imports of automotive vehicles, parts, and engines decreased by $8.3 billion.
- The real goods deficit decreased by $64.4 billion, or 42.9%, to $85.6 billion.
Big Picture
- Bear in mind that the March trade deficit was at a record level, driven by a surge in imports that was a function of frontrunning the tariffs. With the April report, there is little question that the tariff actions upended import activity. The result is that there was a major dent made in the trade deficit, which President Trump will enjoy seeing. Another takeaway is that the plunge in imports will result in the net exports component making a materially positive contribution to Q2 GDP and economists raising their Q2 GDP forecasts.
Category |
APR |
MAR |
FEB |
JAN |
DEC |
Trade Deficit |
-$61.6B |
-$138.3B |
-$122.0B |
-$130.3B |
-$96.9B |
Exports |
$289.4B |
$281.1B |
$278.7B |
$272.4B |
$270.2B |
Imports |
$351.0B |
$419.4B |
$400.7B |
$402.7B |
$367.1B |