U.S. Trade Deficit Narrows in April as Exports Outpace Imports

The U.S. trade deficit narrowed in April as export growth exceeded the increase in imports, supported by stronger shipments of capital goods and industrial supplies.

According to data released Tuesday by the Commerce Department’s Bureau of Economic Analysis (BEA), the U.S. trade deficit declined 1.2% to $55.9 billion during the month. The March deficit was also revised lower to $56.6 billion from the previously reported $60.3 billion.

Economists had expected the April trade deficit to come in at approximately $56.2 billion.

Exports Rise on Strong Demand for Key Goods

U.S. exports posted solid growth in April, with total goods exports increasing by $8.7 billion to reach $221.3 billion.

Several sectors contributed to the improvement. Exports of computers rose by $2.5 billion, while civilian aircraft exports increased by $1 billion. Crude oil shipments recorded one of the largest gains, climbing by $6.4 billion during the month.

The stronger export performance helped offset the rise in imports and contributed to the overall improvement in the trade balance.

Imports Also Increased During the Month

Despite the narrowing trade deficit, imports continued to grow in April.

Goods imports rose by $6.4 billion to $304.9 billion, driven primarily by higher purchases of computers, semiconductors, and telecommunications equipment, according to the BEA.

The increase reflects ongoing demand for technology-related products and industrial components across the U.S. economy.

Three-Month Trend Shows Continued Trade Activity

Looking beyond monthly fluctuations, the three-month moving average indicated continued expansion in both exports and imports.

During this period, exports increased by $9.1 billion, while imports rose by $9.7 billion. The moving average provides a clearer picture of underlying trade trends by smoothing out short-term volatility.

Trade Deficit Improves Compared to Last Year

On a year-over-year basis, the average goods and services trade deficit improved significantly.

Compared with the three months ending in April 2025, the average deficit over the latest three-month period declined by $47.6 billion, highlighting a notable improvement in the U.S. trade position.

Trade Could Boost Second-Quarter GDP Growth

Trade has been a drag on U.S. economic growth over the previous two quarters. However, recent data suggests the sector could become a positive contributor to economic output in the second quarter.

Analysts at Capital Economics noted that, although the headline trade deficit changed only modestly in April, export volumes adjusted for gold-related distortions significantly outpaced import volumes.

As a result, the research firm believes net trade is on track to provide an even stronger contribution to second-quarter U.S. GDP growth than previously anticipated, potentially supporting broader economic expansion in the months ahead.