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In a stunning display of tariff firepower, U.S. goods imports plummeted by 20% in April, the sharpest monthly drop ever recorded after President Donald Trump imposed sweeping import taxes to revive American manufacturing.
According to data released by the U.S. Commerce Department, the collapse in imports spanned nearly every major category, from passenger cars to pharmaceuticals. It came on the heels of a preemptive surge earlier in the year, as companies rushed to stockpile goods ahead of the expected levies.
The report showed trade with China and Canada fell to their lowest levels since 2020 and 2021, respectively. The dramatic decline helped slash the U.S. trade deficit in goods by nearly half a record one-month contraction.
Oxford Economics noted that while the data reflect the impact of tariffs, some distortion remains due to the earlier import boom. “The April trade report indicates the impact from tariffs has well and truly arrived,” analysts said.
Since returning to office in January, Trump has introduced a blanket 10% duty on most imports and sector-specific hikes on steel, aluminum, and autos. Some countries faced even higher rates briefly, though those were paused for 90 days pending negotiations.
Trump has framed the tariffs as a strategy to bolster domestic manufacturing and increase U.S. leverage in trade talks. With the clock ticking, U.S. officials are scrambling to secure trade deals before the temporary exemptions expire next month.
In a recent phone call, Trump and President Xi Jinping discussed the fraught negotiations. Trump described the call as “very good” and noted that both sides would meet again soon. Chinese state media confirmed the continuation of talks and extended an invitation for a visit.
The sweeping tariffs have pushed the effective U.S. import tax rate to its highest level since the 1930s. While overall U.S. imports in the first four months of 2025 are still 20% higher than last year, April’s figures paint a stark picture of deceleration.
Imports from Mexico’s steel sector were halved last month. Meanwhile, Canada saw its trade deficit ballooning to a record C$7.1 billion as exports to the U.S. fell for a third straight month.
Despite the widespread decline, imports from Vietnam and Taiwan surged, likely reflecting rerouted supply chains and temporarily lifted duties.
In April, the U.S. goods and services trade deficit narrowed to $61.6 billion, down from $138.3 billion in March.
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