The U.S. trade deficit fell by a record amount in April as import demand slowed due to reduced urgency ahead of Trump’s tariffs, according to CNBC. The trade deficit dropped to $61.6 billion in April, falling $76.7 billion from the previous month and beating the Dow Jones forecast of $66.3 billion. The move reversed a previous import surge triggered by Trump’s April 2 “liberation day” announcement. Imports dropped 16.3% to $351 billion while exports rose 3%, signaling a sharp shift in trade activity. Trump imposed unexpected 10% tariffs on all U.S. imports and proposed reciprocal tariffs, but later eased these measures and entered a 90-day negotiation period. Economist Elizabeth Renter cautioned that while a shrinking trade deficit may seem positive, it could signal reduced economic activity, as imports have broadly benefited Americans.
