Trump's Tariffs Working as Advertised as Trade Deficit Plummets Record Amount in April
The White House touted three positive indicators for the economy on Friday, including that the trade deficit fell by the largest monthly amount on record.
The Trump press office also highlighted that inflation eased and incomes rose in April.
The Wall Street Journal reported on Friday that the U.S. trade deficit shrank a record amount last month, under President Donald Trump’s new tariff policy, which he unveiled early that month.
“Goods imports fell by 20% to $276.1 billion, while exports rose 3.4% to $188.5 billion,” the Commerce Department said, according to the Journal.
“That yielded a goods trade deficit of $87.6 billion, down from $162.3 billion in March,” the outlet added.
📉🔥 “The U.S. trade deficit in goods narrowed 46% to $87.6 billion in April from a record $162.3 billion in March, according to the Commerce Department’s advanced estimate released Friday.” pic.twitter.com/gOCtbSVXC0
— Trump War Room (@TrumpWarRoom) May 30, 2025
On April 2, Trump announced his “Liberation Day” universal 10 percent tariff and higher reciprocal tariffs for those countries his administration identified as being particularly egregious in blocking U.S. products from their markets.
The policy has been challenged in court, but after a federal trade court ruled against Trump on Wednesday, an appellate court in Washington stayed the order ending the tariffs the following day at least until June 9, while the litigation proceeds.
Many economists and Democratic lawmakers predicted Trump’s tariffs would be inflationary.
Trump’s tariffs are one of the most disastrous and poorly thought-out policies he’s tried yet. And that’s saying a lot.
It’ll cost the average American family $5,000 more each year. pic.twitter.com/LJHnqOmmgN
— Chuck Schumer (@SenSchumer) April 4, 2025
However, CNBC reported Friday that the personal consumption expenditures price index — the Federal Reserve’s key inflation measure — fell to 2.1 percent in April.
Earlier this month, the U.S Bureau of Labor Statistics reported the consumer price index fell to 2.3 percent in April, the lowest since February 2021, which was prior to the Democrats passing the $1.9 trillion American Rescue Plan.
Economists, including top Treasury Department officials who served in the Obama and Clinton administrations, said the legislation was a primary cause of inflation spiking to a 40-year high during the Biden administration.
WOW! pic.twitter.com/1RPpRjIqXs
— GOP (@GOP) May 30, 2025
Additionally, as inflation continues to ease under Trump, personal income increased by 0.8 percent in April, “almost triple the expectations,” CNBC’s Rick Santelli said.
CNBC: Personal income increased 0.8% in April — “almost TRIPLE the expectations.” 🔥
“They’re powerful numbers — up 0.6% in January, up 0.7% in February, up 0.5% last month, up 0.8% this month. This is a GREAT four-month start to any year.” pic.twitter.com/s1Rx1KAYFl
— Rapid Response 47 (@RapidResponse47) May 30, 2025
He further noted that income has been up in the first four months of the year.
“They’re powerful numbers — up 0.6 percent in January, up 0.7 percent in February, up 0.5 percent last month, up 0.8 percent this month,” Santelli said.
“This is a GREAT four-month start to any year.”
Additionally, Heritage Foundation economist E.J. Antoni argued in posts on X late last month that the trade numbers will only get better in the months ahead, including in terms of their impact on the U.S. gross domestic product.
The flood of imports from Q1 is going to tank imports for Q2/Q3, which will show up as faster GDP growth in the Q2 report; ATL Fed and NY Fed are both forecasting significant improvements in growth at 2.5% and 2.72%, respectively: https://t.co/GTSx5w8tgU pic.twitter.com/WnbPFf4ckx
— E.J. Antoni, Ph.D. (@RealEJAntoni) April 30, 2025
He wrote, “The flood of imports from Q1 [January through March] is going to tank imports for Q2/Q3, which will show up as faster GDP growth in the Q2 report; ATL Fed and NY Fed are both forecasting significant improvements in growth at 2.5% and 2.72%, respectively.”
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