The commerce deficit fell by a file quantity in April as a result of the demand for imports fell
The US deficit with its global trading partners fell for the largest amount in April because companies and consumers no longer received imports before President Donald Trump's tariffs.
After a record-breaking increase in trade weight, the deficit was $ 61.6 billion, which emerges to a decline of $ 76.7 billion compared to the previous month and under the consensus forecast of Dow Jones Consensus for $ 66.3 billion on Thursday.
The move reverses a massive increase in imports, which came at the door to the announcement of the “liberation day” of Trump on April 2.
In a move that was even more aggressive than expected, Trump hit 10% larfer tasks on US imports and published a menu of so-called mutual tariffs, which aimed at what he regarded as unfair trading practices from dozens of countries.
Since then, Trump has withdrawn the mutual charges instead of a 90-day negotiation period. Similarly, he suspended the taxes that aimed specifically on China, which reacted to benefits in kind than the talks continued.
Imports slowed down strongly in April and decreased by 16.3% to 351 billion US dollars. At the same time accelerated exports and increased by 3%.
“'Deficit' implies something bad, but in this case the story is more nuanced. International trade was good for the US economy – importing more than we will go to the Americans on the whole,” said Elizabeth Tenant, Senior Economist at Consumer Site Nerdwallet. “If the trade deficit shrinks, we should be careful to interpret this as fully positive messages.”
In the year until today, the deficit has increased by 65.7% compared to the same period in 2024.
The greatest imbalance between goods was with China with 19.7 billion US dollars, followed by the European Union (17.9 billion US dollars) and Vietnam ($ 14.5 billion).
In the recent developments on the trading front, Trump said on Thursday that additional discussions with China took place and that it will probably be soon. Trump said he spoke to the Chinese President Xi Jinping in a “very good” call for 90 minutes.
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