The U.S. trade deficit narrowed slightly in April as a record surge in petroleum exports offset a massive increase in imports of artificial intelligence infrastructure equipment, leaving the underlying trade position little changed.
The goods and services deficit shrank 1.2 percent to $55.9 billion from a revised $56.6 billion in March, the Commerce Department said Tuesday. Economists had forecast a $55.9 billion deficit. Exports rose 2.6 percent to a record $327.1 billion while imports climbed 2.0 percent to $383.0 billion.
The dominant force on the export side was petroleum. With the Strait of Hormuz effectively closed since the U.S.-backed war with Iran began in late February, crude oil prices have surged above $100 a barrel. American producers responded with record export volumes, pushing total petroleum exports to a record $36.7 billion from $27.6 billion in March. The nation’s petroleum trade surplus swelled to a record $17.7 billion.
On the import side, capital goods imports hit a record $126.9 billion, driven by a continued surge in AI-related equipment. Computers rose $2.2 billion, semiconductors climbed $1.7 billion, and telecommunications equipment advanced $1.6 billion as domestic data center construction showed no signs of slowing.
The goods trade deficit with China narrowed $2.6 billion to $12.0 billion as both exports and imports declined. The deficit with Vietnam widened, continuing a pattern of supply chain migration that has accelerated since U.S.-China trade tensions escalated during Trump’s first term.
Services exports fell $0.4 billion to $105.8 billion, dragged down by weakness in travel, transport, and maintenance services. Travel exports dropped to their lowest level in more than two years. Services imports rose $1.3 billion to $78.0 billion, leaving the services surplus at $27.8 billion.
Adjusted for inflation, the merchandise trade deficit narrowed $1.5 billion to $84.3 billion in April.
The report incorporated annual revisions to goods and services data. March’s deficit was revised sharply lower to $56.6 billion from the previously reported $60.3 billion.
Year-to-date, the deficit is running 49 percent below the same period in 2025, though the comparison is heavily distorted by a record surge in early 2025 imports as businesses rushed to front-run Trump’s Liberation Day tariffs.
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