The U.S. trade deficit experienced a substantial reduction in April 2025, decreasing by 55.5% to $61.6 billion from a revised $138.3 billion in March. This notable contraction is primarily attributed to a sharp decline in imports, which fell by 16.3% to $351.0 billion. The decrease in imports is largely due to businesses reducing purchases of goods such as pharmaceuticals, finished metal shapes, light vehicles, and household electronics in response to new tariffs implemented in early April.
Conversely, exports increased by 3.0% to a record $289.4 billion, driven by higher shipments of finished metal shapes, non-monetary gold, and computers. The trade deficit with China narrowed to $19.7 billion, down from $24.18 billion in March, while the deficit with the European Union decreased to $17.94 billion from $47.96 billion.
This significant shift in trade dynamics is expected to positively influence the U.S. Gross Domestic Product (GDP) for the second quarter of 2025, with detailed figures anticipated in the upcoming release.
