US April Trade Deficit Hits 18-Month High... Could It Undermine Growth Rate?

The United States' trade deficit in April this year reached its highest level in a year and a half due to increased imports of automobiles, PCs, and industrial materials.

On the 6th (local time), the U.S. Department of Commerce announced that the trade deficit in April this year was $74.6 billion, an 8.7% increase compared to the previous month. This trade deficit size is the largest since October 2022.

Exports recorded $263.7 billion, up 0.8% from the previous month. Imports were $338.2 billion, up 2.4% during the same period, marking the highest level since mid-2022.

With the expansion of the trade deficit in April, downward pressure is expected on the United States' Gross Domestic Product (GDP) growth rate. Previously, according to the GDPNow released by the Federal Reserve Bank of Atlanta, the second-quarter growth rate was revised down from 2.7% to 1.8%. Trade was analyzed to have reduced the growth rate by 0.5 percentage points.

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