The U.S. trade deficit narrowed in April as exports and imports tumbled, highlighting the impact of President Donald Trump’s tariffs even before negotiations with China unraveled and he threatened levies on Mexican goods.
The deficit in goods and services shrank to $50.8 billion, nearly in line with economist estimates, from a revised $51.9 billion the prior month, according to a Commerce Department report June 6. The merchandise-trade gap with China increased to $29.4 billion, while the Mexico deficit narrowed to $7.9 billion.
Exports fell the most in three years, partially reflecting lower demand for civilian aircraft after the worldwide grounding of Boeing Co.’s 737 Max model, though the decline in shipments abroad was broad-based. A narrower deficit overall will add to economic growth and allow Trump to claim some victory on pledges to reduce the gap, though it’s come at a cost to American companies that have lost export business or are paying higher prices.