Imports into the United States plummeted by a staggering 20% in April, marking the largest monthly decline on record, as the impact of a fresh wave of tariffs imposed by President Donald Trump took hold. The Commerce Department’s latest trade report highlights how these aggressive trade policies have dramatically curtailed purchases from key partners, including China and Canada.
The sharp retreat in trade comes after a surge earlier in the year, when firms scrambled to ship goods into the U.S. ahead of the anticipated tariffs. That frontloading has now given way to a slump, with imports of everything from cars and pharmaceuticals to cell phones and apparel taking a hit. Passenger car imports alone fell by a third from March to April.
President Trump, who returned to office in January, has introduced a 10% blanket tariff on most imported goods and hiked duties on targeted items like steel, aluminum, and automobiles. While some countries briefly faced even higher rates, those were suspended for 90 days to allow time for negotiations, which are currently underway.
Trade with China and Canada has declined to its lowest levels since 2020 and 2021, respectively. Meanwhile, Mexico’s steel industry reported its exports to the U.S. were slashed by half, and Canada’s trade deficit widened to a record C$7.1 billion as its exports continued to fall.
Despite the sharp monthly drop, U.S. goods imports are still up around 20% in the first four months of 2025 compared to the same period last year, reflecting the earlier rush to import. Exports have risen by 5% in the same timeframe.
The net effect of the import decline was a dramatic narrowing of the U.S. goods trade deficit, which dropped by nearly 50% in April to $61.6 billion, down from $138.3 billion in March. Analysts, including Oxford Economics, caution that these figures should be viewed in light of previous surges in activity.
As talks between the U.S. and its trade partners intensify, including recent discussions between Trump and Chinese President Xi Jinping, the global trade landscape remains uncertain. The U.S. now faces the challenge of balancing protectionist policies with economic stability.
