US trade deficit falls by over 50% in April after record in March

The U.S. trade deficit dropped by more than half in April compared to March, following the implementation of tariffs on imports ordered by President Donald Trump, according to official data released Thursday.

The world’s largest economy recorded a trade deficit of $61.6 billion in April, the month when across-the-board 10% tariffs were imposed on most of its trading partners.

According to the Commerce Department, this represents a 55% drop from March, when the trade deficit hit a record $138.3 billion.

The elevated March figure was attributed to companies increasing purchases to stock up on goods ahead of the tariff implementation.

However, in April, imports declined by 16.3% to $351 billion.

In addition to the 10% levy, Trump announced higher tariffs on goods from several economies—including the European Union and Japan—but later suspended them to allow for negotiations.

The suspension is set to remain in effect through July.

China was the primary target of Trump’s tariff offensive, facing duties of up to 145% on its exports to the U.S. In retaliation, Beijing imposed tariffs of up to 125% on American goods.

Both sides agreed to a temporary de-escalation in May.