Fresh trade data point to a modest improvement in the U.S. external balance at the start of the second quarter. A sustained rise in exports could help trade support economic growth this quarter after weighing on gross domestic product for two straight quarters.
Highlights
- The U.S. trade deficit narrowed 1.2% to $55.9 billion in April, compared with a revised $56.6 billion in March.
- April exports reached an all-time high, exceeding economists’ expectations and narrowing the overall trade gap.
- If the export momentum holds, trade could boost GDP this quarter after acting as a drag for the previous two quarters.
April trade figures and revisions
The U.S. Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday that the trade gap contracts 1.2% to $55.9 billion in April.That compares with a revised March deficit of $56.6 billion, lower than the previously reported $60.3 billion. Exports jump to a record high in April, helping narrow the overall deficit.
Economists polled by Reuters forecast the trade deficit shrinking to $56.2 billion in April, leaving the reported figure slightly below expectations.
Growth outlook from trade
Trade has been a drag on gross domestic product for two straight quarters, making the April improvement notable for the broader economic outlook.If the export surge is sustained, trade is on course to contribute to economic growth this quarter instead of acting as a headwind.
In our earlier article on the latest U.S. trade balance data for April, we noted that the goods and services deficit narrowed to $55.9 billion from a revised $56.6 billion in March as both exports and imports increased. We highlighted that exports rose to $327.1 billion, led by a jump in goods—especially capital goods—while the year-to-date deficit was sharply lower versus the same period in 2025, pointing to a meaningfully different trade pattern than a year earlier.
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