In April 2025, the U.S. trade deficit declined significantly, primarily due to a 16.3% reduction in imports, totaling $351 billion.

Exports also saw a rise of 3.0%, reaching an all-time high of $289.4 billion, driven by a notable increase in goods exports.

The increase in exports was particularly supported by a $10.4 billion rise in industrial supplies and materials.

Despite the overall reduction in the trade deficit, imports from Vietnam and Taiwan reached record highs, contrasting with the lowest levels of imports from Canada and China in years.

The trade slowdown has been attributed to the impact of tariffs, with targeted tariffs on key sectors like steel and automobiles being implemented.

China has faced the brunt of these tariffs, with rates escalating to as high as 145%, leading to significant disruptions in shipments.

A temporary de-escalation in trade tensions was agreed upon by the U.S. and China, although uncertainty remains regarding the durability of this agreement.

On June 5, 2025, Trump confirmed a productive phone call with Chinese President Xi Jinping, indicating ongoing negotiations to ease trade tensions.

Economists suggest that the reduction in the trade deficit could positively influence U.S. GDP growth in the second quarter of 2025.

However, analysts caution that the tariffs may disrupt global trade and increase prices for U.S. consumers, potentially diminishing their purchasing power.

The average effective tariff rate in the U.S. is currently at its highest since the 1930s, reflecting the aggressive tariff strategy under Trump's administration.

While the trade deficit has shown signs of improvement, year-to-date figures indicate a 65.7% increase compared to the same period in 2024, highlighting ongoing trade imbalances.