US Trade Deficit Hit 7-Month Minimum
US trade deficit reached a 7-month minimum in April thanks to rise in exports, which in turn were driven by increased shipments of industrial materials and soybeans. According to the Commerce Department, the trade spread fell 2.1% to 46.2 billion dollars, marking the minimum of seven months. The trade deficit dropped to 47.2 billion dollars, down from the previous 49.0 billion dollars.
Considering adjustment to the inflation, the trade gap fell from 78.2 billion dollars to 77.5 billion dollars. The real trade deficit moved under its average of 82.5 billion dollars in Q1. The Federal Reserve Bank of Atlanta now projects that the economic growth in Q2 will top the annualized rate of 4.0%. The economy rose at a pace of 2.2% in Q1.
The one obstacle to this progress is Donald Trump’s trade policy. Economists, however, claim the steel and aluminum tariffs won’t really influence the trade deficit.
Trade deficit with China rose 8.1% to 28.0 billion dollars in April. The deficit with Mexico reduced 29.8% to 5.7 billion dollars in April. Trade gap with Canada marked a 0.8 billion dollars. In April, exports of products and services lifted 0.3% to a record 211.2 billion dollars. Exports of industrial supplies and materials marked the all-time maximum. Soybean exports were up 0.3 billion dollars as well as corn shipments. Exports of commercial aircraft fell 2.8 billion dollars. Exports to China reduced 17.1% in April.
Imports of products and services dropped 0.2% to 257.4 billion dollars in April. Imports of consumer products were down 2.8 billion dollars. Motor vehicle imports decreased 1.0 billion dollars. Crude oil imports surged 1.0 billion dollars in April. Imports from China were unchanged.