FX.co ★ US Goods Trade Deficit Narrows Sharply in April as Imports Plunge

The U.S. trade deficit in goods significantly contracted in April 2025, shrinking to $87.6 billion. This represents a $74.6 billion reduction, or a 46% drop, from the record high of $162.3 billion recorded in March, based on preliminary figures. This is the smallest monthly trade deficit reported since December 2023. The notable improvement primarily stemmed from a 19.8% decline in imports, offsetting the 5.7% rise observed in the prior month, as the Trump administration's new tariffs took effect. Concurrently, exports continued to climb, increasing by 3.4% in April, building on a 2.3% rise in March.