US trade deficit at $61.6 billion in April, drops 56% from March; down 18% with India

US trade deficit at $61.6 billion drops 56% from March; down 18% with India

US trade deficit narrowed to a 19-month low of $61.6 billion in April compared with the previous month, according to data released by the US Census bureau on June 5.

The trade deficit stood at $138.3 billion in March. Goods and services imports were $351 billion in April, down 16.3 percent from the previous month. On the other hand, exports rose 3 percent to $294 billion.

The April goods deficit at $87.4 billion was the lowest since October 2023.

The deficit had jumped 14 percent in the previous month, as exporters had rushed to get their product to the American shores.

Imports of goods were down 20 percent from the previous month, with consumer goods declining 32 percent from the previous month, as pharma imports dropped 52 percent in April.

Automobile imports dropped 20 percent, whereas semiconductor imports were down 12 percent from the previous month.

Iron and steel, which has drawn the ire of the US president again, was down around 20 percent in April.

In June, US President Donald Trump announced a doubling of duties to 50 percent on steel and aluminium imports.

Industrial supplies and materials declined 31 percent during the month, with finished metal shapes dropping 80 percent--the highest decline among categories.

While India's trade surplus with the US declined 18 percent, merchandise trade surplus dipped 31 percent, more than Germany which suffered a 25 percent dip in trade surplus with the US.

South Korea's trade surplus with the US was down 50 percent, whereas Ireland suffered a 68 percent dip.

Trade surplus with Taiwan increased 8 percent during this period, as that with Canada declined 48 percent.

China was relatively shielded with only a 19 percent dip in surplus.

Imports from India were down 15 percent, whereas those from China declined 19 percent.

US ran a good's deficit with India of $5.3 billion compared with $7.6 billion in the previous month.

US President Donald Trump had announced reciprocal tariffs on countries on April 2, which were rolled back to 10 percent flat tariff across the world on April 9.

China, EU and India have been negotiating a trade agreement with the US, among confusion arising from US courts, which have deemed Trump's tariffs as illegal and the US president threatening more tariffs.

The US President has threatened 50 percent duties on the European Union.