US Trade Deficit Plummets 56 Percent as Trump’s Tariffs Take Hold

Imports fell and exports rose to a record high.

The Seattle Bridge container ship, sailing under the flag of Panama, in the background of stacked containers in the Port of Los Angeles on May 6, 2025. Frederic J. Brown/AFP via Getty Images

The U.S. trade deficit dropped sharply in April, driven by President Donald Trump’s sweeping global tariffs that upended international trade.

According to the Bureau of Economic Analysis, the goods and services trade gap plummeted by 56 percent to $61.6 billion, from $138.3 billion, the lowest since August 2023.