Updated: 05-Jun-25 09:58 ET
| April Trade Balance |
 |
|
| Updated: 05-Jun-25 09:58 ET |
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 |