Bankinter | The US trade deficit narrows sharply following the largest ever drop in imports (19.8% month-on-month), while exports grew by 3.4%. The item where the reduction in the deficit is most evident is in consumer goods (down $49.276 billion in April against $80.843 billion previously). After the sharp increase in the deficit in Q1 2025 to avoid the impact of tariffs, imports are normalising, softening the impact on the trade deficit. Imports will tend to reflect the higher cost of products purchased from US trading partners following the application of tariffs, which will have a negative effect on GDP.
US trade deficit narrows sharply in April following 19.8% month-on-month drop in imports, largest ever
