US trade deficit narrows in April to $56 billion as record exports offset strong imports

The US trade deficit narrowed modestly in April as record exports, led by a sharp rise in petroleum shipments, helped offset continued strength in imports tied to artificial intelligence and data centre investments.

According to data released by the US Commerce Department on Tuesday, the goods and services trade gap shrank 1.2% month-on-month to $55.9 billion in April, slightly better than economists' expectations of a deficit of around $56.1 billion, according to surveys by Bloomberg and Reuters.

The March trade deficit was also revised lower to $56.6 billion from the previously reported $60.3 billion.

Exports rose 2.6% to a record $327.1 billion during the month, driven by a 60% jump in crude oil shipments as well as higher exports of fuel oil and other petroleum products.

Goods exports climbed 4.1% to an all-time high of $221.3 billion, with gains also seen in capital goods such as computers and civilian aircraft. Industrial supplies and materials exports, including petroleum products, also reached record levels, Reuters reported.

Imports increased 2% to $383 billion, reflecting robust demand for technology equipment. Capital goods imports surged by $7 billion, led by computers, semiconductors and telecommunications equipment as businesses continued to invest in artificial intelligence infrastructure and data centres.

However, imports of industrial supplies and materials declined during the month.

The narrowing trade gap offers some relief for the US economy after trade weighed on gross domestic product growth for two consecutive quarters. Economists said that if export momentum is sustained, net trade could make a positive contribution to economic growth in the second quarter.

While the Trump administration's tariff policies have sought to reduce America's trade imbalance, April's figures suggest the overall deficit remains largely unchanged, with stronger exports rather than weaker imports driving the improvement.