The US trade deficit narrowed significantly in April because President Donald Trump sharply increased the tariff before paused a large number of levies, US Department of Trade Data on Thursday shows.
Trump heralded tariffs as an effort to cut the trade deficit of the country, which according to the President he considered the threat to the prosperity of the country’s economy. However, many economists disagree, saying the trade deficit reflects the machine driven by consumers from the US economy.
The trade gap fell more than half in April when imports plummeted, data showed. The US recorded a trade deficit of around $ 61 billion in April, marked a sharp decline in the trading gap of $ 140 billion a month earlier.
Imports fell 16% in April because some trading barriers apply, data shows. Imports have been beating upwards earlier because some companies rushed to inventory inventory before leisure redeeming with additional costs.
The country’s trade gap was established far below the $ 131 billion deficit recorded in January, Trump served.
This prospect is bleak for Trump tariff policy and wider economy.
The Trump approach is active and no longer on tariffs to make their level of doubt. A pair of court decisions last week pushed the most steep tariff of Trump to Limbo, adding another layer of uncertainty when a federal appeal court judge determined whether a large number of policies passed through the crowd.
Cargo shipping containers are loaded with cranes on container ships at the Burchardkai container terminal at the Hamburg Port, North Germany, on June 3, 2025.
Fabian Bimmer/AFP via Getty Images
The uncertain policy environment faced by business has coincided with anxious moments for consumers. Consumer attitudes have deteriorated for four consecutive months because the tariff has taken place, according to a survey conducted by the University of Michigan.
Consumer expenditure, which contributes about two -thirds of US economic activities, can weaken if the buyer’s taste is reduced and the price of imports rises.
So far, the main steps of the economy are mostly against the decline. The unemployment rate is at a low historical level and work growth remains strong, although it has slowed from the previous highest. In recent months, inflation has cooled, reaching the lowest level since 2021.
Organizations for economic and development cooperation, or OECD, forecasts on Tuesday continue growth for the US economy in 2025 and 2026, although at a slower speed than last year. In addition, the estimated recession on Wall Street faded in the last few weeks after Trump returned several tariffs.
This is a developing story. Please check again for updates.