According to data released by the U.S. Census Bureau and the Bureau of Economic Analysis (BEA), the U.S. goods and services trade deficit narrowed to $55.9 billion in April 2026. This is a decrease of $700 million from the revised March figure of $56.6 billion and marks continued improvement in the U.S. trade deficit so far this year.
The data show that total U.S. exports in April reached $327.1 billion, a record high, while imports totaled $383.0 billion, also rising from the previous month. With exports growing slightly faster than imports, the overall trade deficit narrowed further.
Record exports drive deficit reduction
Structurally, U.S. goods exports increased by $8.7 billion in April, reaching $221.3 billion.
Capital goods were the strongest contributor, rising by $4.0 billion. Computer exports increased by $2.5 billion, and civilian aircraft exports rose by $1.0 billion. Industrial materials and energy exports increased by $2.5 billion, including a sharp $6.4 billion increase in crude oil exports, while fuel oil and other petroleum products rose by $1.3 billion and $1.0 billion respectively.
Consumer goods exports also continued to grow, increasing by $1.7 billion.
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In contrast, services exports weakened slightly, falling by $400 million to $105.8 billion. Declines were seen in travel, transportation, and repair services exports, which weighed somewhat on overall export growth.
Tech imports continue to drive growth
Despite the narrowing deficit, U.S. imports continued to expand.
Goods imports rose by $6.4 billion in April to $304.9 billion. Capital goods imports increased by $7.0 billion, the main driver of import growth. Computer imports rose by $2.2 billion, semiconductors by $1.7 billion, and telecommunications equipment by $1.6 billion.
Services imports increased by $1.3 billion to $78.0 billion, driven mainly by rising demand for transportation, travel, and insurance services.
Analysts believe that continued corporate purchases of high-tech equipment reflect sustained investment activity. At the same time, the expansion of AI infrastructure and data centers is also driving demand for semiconductors and computer equipment.
US–China trade deficit narrows further
By trading partner, the U.S. trade balance with several major economies shifted significantly.
In April, the U.S. goods trade deficit with China narrowed by $2.6 billion to $12.0 billion, one of the lower levels in recent years.
Meanwhile, the U.S. trade surplus with Central and South America expanded by $2.6 billion to $7.8 billion, while the surplus with the United Kingdom narrowed from $3.8 billion to $2.6 billion.
BEA data show that in Q1 2026, the U.S. trade position with the European Union improved significantly, shifting from a $3.0 billion deficit in Q4 2025 to a $9.2 billion surplus. The U.S. trade surplus with Hong Kong expanded to $15.5 billion, while the deficit with Taiwan widened further to $59.1 billion.
Trade performance improves significantly year-to-date
Cumulatively, U.S. trade conditions in the first four months of this year are significantly better than a year earlier.
As of the end of April, the cumulative U.S. goods and services trade deficit decreased by $213.5 billion compared with the same period in 2025, a 49.1% decline. Exports rose by $128.2 billion (+11.3 percent), while imports fell by $85.3 billion (-5.5 percent).
The same report also included annual statistical revisions. Goods trade data were revised back to 2021, and services data back to 1999. Officials stated that while historical figures were adjusted, the revisions did not change the overall long-term trend of persistent U.S. trade deficits.
The Census Bureau and BEA jointly publish monthly trade statistics. The next report, covering May 2026 data, is scheduled for release on July 7.
Notably, amid ongoing efforts by the Trump administration to reshore manufacturing, expand energy exports, and adjust global trade relationships, the narrowing of the trade deficit compared with last year has become an important indicator of White House economic policy performance. However, several economists caution that future trade performance will continue to be influenced by global demand, exchange rates, and geopolitical factors.
