Thu, 05 Jun 2025

Thu, 05 Jun 2025 Tariffs prompt record plunge in US imports

American purchases of Canadian goods in April fell to the lowest level since 2021.

* Goods brought into the US dropped by 20% in April, marking the largest monthly decline on record.
* The drop reflects the impact of tariffs introduced by President Trump, which had led companies to rush imports earlier this year.
* US purchases from major trade partners such as Canada and China fell to their lowest levels since 2021 and 2020 respectively.
* The collapse in imports helped cut the US trade deficit in goods by almost half, a record decline.
* Trade with countries including Mexico has been severely affected, with Mexican steel exports to the US halving last month.
* In Canada, the trade deficit hit an all-time high, widening to C$7.1bn, as exports to the US shrank for a third month in a row.
* Imports of passenger cars dropped by a third from March to April, while imports of pharmaceutical products and most consumer goods fell.
* However, imports surged from Vietnam and Taiwan, which saw their exports briefly targeted with higher rates before Trump suspended those levies.
* Overall, US goods imports are up about 20% in the first four months of the year compared with the same period last year, while exports are up about 5%.
* The overall goods and services deficit in April was $61.6bn, down from $138.3bn in March.
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