US imports plummet 20% in April due to Trump's tariffs, marking a record monthly drop. Trade deficit shrinks as Canada and China exports hit multi-year lows. Talks continue amid global trade tensions. (219 characters)
The United States experienced a historic 20% decline in imports during April, marking the steepest monthly drop on record amid a series of tariffs imposed by the Trump administration.
The sharp reduction reflects a sudden contraction in trade activity, following an earlier surge as businesses accelerated shipments to avoid impending import taxes. According to the Commerce Department, purchases from key trading partners, including Canada and China, fell to their lowest levels since 2021 and 2020, respectively.
The collapse in imports contributed to a near-halving of the U.S. trade deficit in goods—an unprecedented decrease. Analysts caution that while the April figures highlight the immediate effects of tariffs, they should be viewed in the context of heightened trade activity earlier in the year.
"The April trade report indicates the impact from tariffs has well and truly arrived,"
noted Oxford Economics, emphasizing the need for careful interpretation of the data.
Since January, the Trump administration has introduced higher tariffs on specific imports, such as steel, aluminum, and automobiles, while also implementing a broad 10% levy on most goods from global trading partners. Some nations initially faced even steeper duties, though these were temporarily suspended for 90 days to facilitate negotiations.
Administration officials argue that these measures aim to revitalize domestic manufacturing and strengthen the U.S. position in trade discussions. High-level talks are currently underway to finalize agreements before the suspension period concludes next month.
Recent diplomatic efforts included a phone conversation between President Trump and Chinese President Xi Jinping, described by Trump as a "very good phone call" focused on trade. Both sides agreed to continue negotiations, with China extending an invitation for a future visit.
Analysts report that the current tariff policies have pushed the average U.S. tariff rate to its highest level since the 1930s. The abrupt policy shifts have disrupted trade flows, leading to significant declines in certain sectors. For instance, Mexican steel exports to the U.S. dropped by half in April, while Canada’s trade deficit widened to a record C$7.1 billion.
The Commerce Department’s report revealed widespread impacts across industries, with notable declines in imports of passenger vehicles, pharmaceuticals, and consumer goods such as electronics, furniture, and apparel. However, exports from Vietnam and Taiwan saw temporary surges after previously facing—and then avoiding—higher tariffs.
Despite the April downturn, U.S. goods imports for the first four months of the year remain approximately 20% higher than the same period in 2024. Exports have also increased by about 5% year-over-year. The overall trade deficit for goods and services in April stood at $61.6 billion, down significantly from $138.3 billion in March.
