Petroleum and capital goods exports hit all-time highs, reducing the deficit and signaling potential GDP growth upside.
The US trade deficit shrank 1.2% to $55.9 billion in April, driven by record exports of petroleum products and capital goods. Exports rose 2.6% to $327.1 billion, the highest on record, while goods exports surged 4.1% to $221.3 billion.
March’s deficit was revised down to $56.6 billion from $60.3 billion. Economists had expected a $56.1 billion gap. Petroleum exports climbed to $36.7 billion from $27.6 billion in March, boosted by higher volumes and oil prices.
The data suggests trade could contribute to second-quarter GDP growth, with tariffs having minimal impact on import flows. Capital goods imports also reached a record, reflecting increased business spending on artificial intelligence.