U.S. Goods Imports Face Largest Drop on Record

The U.S. goods trade deficit is coming down, and its coming down fast. In April, goods imports fell by 19.8% month-over-month to $276.1 billion, marking the largest MoM drop on record as the effects of steep tariffs on foreign goods begin to play out. In March, businesses boosted their import volume in an attempt to front-run the tariffs, contributing to the significant drop the following month. Meanwhile, April exports rose by 3.4% to $188.5 billion.

U.S. Goods Trade Deficit Falls by 46% MoM

Putting those figures together, the U.S. goods trade deficit fell by 46% MoM in April to $87.6 billion. The deficit reached a record high of $162.3 billion in March as a result of the tariff front-running.

A jump in imports could be in the books for May, as the Trump administration announced a 90-day tariff reduction grace period on China on May 12.

The U.S. goods deficit and imports will likely remain volatile given the uncertainty of a U.S.-China trade agreement. This morning, President Trump said that China “HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” a reference to the preliminary trade deal between the two countries.

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