US Trade Deficit Plummets 46% in April Amid Tariff Uncertainty

The US trade deficit in goods collapsed to $87.6 billion in April, a 46% drop from March’s record high. Imports cratered by $68.4 billion to $276.1 billion while exports saw a modest $6.3 billion increase. The dramatic swing reflects the aftermath of March’s import surge as businesses raced to beat anticipated tariff deadlines.

Market uncertainty persists as tariff implementation dates remain in flux. The WHITE House delayed most duties to July, with Chinese product tariffs postponed until mid-August. Legal challenges added further chaos—a trade court briefly blocked Trump-era tariffs before an appeals court reinstated them, leaving businesses navigating daily rule changes.

The import frenzy’s hangover reveals deeper supply chain vulnerabilities. Warehouses remain overloaded from March’s panic buying, while the 90-day tariff reprieve sets the stage for potential repeat volatility. Economists warn of another import surge as the new deadlines approach, with no long-term resolution in sight.