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U.S. Merchandise-Trade Deficit Narrows on Rise in Exports
Shortfall in Goods Trade Shrank 3.4% From March to $82.4 Billion
Key Takeaways:
- The U.S. goods trade deficit shrank to about $82.4 billion in April, driven by a 4% jump in exports, especially capital goods, consumer goods and energy products.
- U.S. shipments of crude oil and fuels hit record levels, with domestic producers filling gaps caused by Middle East disruptions and reduced oil flows through the Strait of Hormuz.
- Imports rose modestly, but firms are stockpiling inventory and increasing equipment imports as a hedge against geopolitical risk and lingering tariff uncertainty.
The U.S. merchandise-trade deficit narrowed in April, reflecting an increase in the value of exports of capital and consumer goods.
The shortfall in goods trade shrank 3.4% from the prior month to $82.4 billion, Commerce Department data showed May 29. The figure isn’t adjusted for inflation. The median estimate in a Bloomberg survey of economists was a $87 billion deficit.
U.S. exports of goods increased 4%. In addition to capital goods and consumer merchandise, outbound shipments of industrial supplies such as crude oil and petroleum products climbed. Imports rose 1.9%.
The effective closure of the Strait of Hormuz because of the Middle East conflict represents another challenge that companies have to navigate after the erratic rollout of U.S. tariffs last year.
Economists say some companies have stepped up efforts to build inventories as a hedge against supply chain disruptions. What’s more, there has been a steady flow of equipment imports for the artificial intelligence build-out.
In addition to the merchandise-trade data, the latest advance economic indicators report showed retail inventories rose 0.7%. Stockpiles at wholesalers climbed 0.5%.
The advance international trade deficit in goods decreased to $82.4 billion in April from $85.3 billion in March as exports increased more than imports.
Learn more: https://t.co/qZYlxNEIvs#CensusEconData #AdvanceInternationalTradeGoods pic.twitter.com/41006qNoDY — U.S. Census Bureau (@uscensusbureau) May 29, 2026
With the war slowing the Middle East oil trade to a trickle, U.S. producers have stepped in to pick up the slack. In April, the U.S. exported a record volume of more than 6.4 million barrels a day, while shipments of fuels including gasoline, diesel and jet also surged.
In the first quarter, net exports subtracted from the government’s calculation of gross domestic product by the most in a year.
More complete April trade figures that include the balance on the services account are due June 9.
