Key facts
- The U.S. trade deficit narrowed to $55.9 billion in April.
- Exports reached a record high of $327.1 billion.
- Imports increased to $383.0 billion.
- Petroleum exports hit a record high, boosted by higher prices and volumes amid Middle East conflict.
- The goods trade deficit with China decreased to $12.0 billion.
The U.S. trade deficit narrowed in April to $55.9 billion, a 1.2% decrease from the revised March deficit of $56.6 billion. This improvement was driven by record exports, particularly in petroleum products and capital goods, which outpaced a 2.0% rise in imports. The increase in petroleum exports, influenced by higher prices and volumes tied to the Middle East conflict, pushed industrial supplies and materials exports to a record high. Exports of capital goods, including computers and civilian aircraft, also reached a new record. The overall goods trade deficit contracted 2.8% to $83.7 billion, and when adjusted for inflation, it narrowed by 1.8%. The trade gap with China also decreased to $12.0 billion.
Economists suggest that if this trend of strong exports continues, trade could contribute positively to second-quarter economic growth. However, some analysts note that the export growth is partly due to higher energy prices resulting from the Iran conflict, raising questions about its sustainability. Despite disruptions in shipping lanes and existing tariffs, trade flows did not appear significantly impacted. Businesses increasing spending on artificial intelligence also contributed to a record high in capital goods imports.