US trade deficit sharply narrows in April as Trump tariffs take hold

[WASHINGTON] The US trade deficit more than halved in April, government data showed on Thursday (Jun 5), pulling back from a record on a plunge in imports as President Donald Trump’s global tariffs kicked in.

The world’s biggest economy logged a trade gap of US$61.6 billion in the same month that Trump unveiled 10 per cent levies on almost all trading partners. This was down by 55.5 per cent from March, said the Commerce Department.

In March, the overall US trade deficit widened to a new record of US$138.3 billion as businesses sought to get ahead of Trump’s promised duties.

But imports slumped by 16.3 per cent in April to US$351 billion as the blanket tariffs on US allies and competitors alike kicked in.

Apart from the 10 per cent levy, Trump also announced – before swiftly pausing – higher rates on dozens of economies, including the European Union and Japan. This halt, which allowed room for trade negotiations to take place, is due to expire in early July.

Goods from China were a major target of Trump as well in recent weeks, with tit-for-tat levies on both sides reaching three digits, bringing many shipments to a halt before the countries de-escalated temporarily. AFP