The U.S. trade deficit in goods contracted far more than expected in April, falling from March’s record high of $162.3 billion to $87.6 billion, according to the Commerce Department’s initial estimate released Friday.
Economists had forecast a $143 billion deficit.
Imports of goods for April were $276.1 billion, $68.4 billion less than March imports. Goods exports rose $6.3 billion to $188.5 billion.
Many businesses and some consumers appear to have loaded up on imports in March, ahead of the Liberation Day tariff announcement. This so-called tariff front-running led to a surge in imports, pulling forward purchases that would have otherwise been made later in the year.
The April decline is likely an extension of this, with purchases of imports falling because household and business inventories were already stocked. In addition, some imports faced higher tariffs in April, likely discouraging purchases.
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