Trump's tariffs: US trade deficit falls significantly

The US trade deficit narrowed noticeably in April, following President Donald Trump's tariff announcements. The gap between imports and exports fell to $61.6 billion, the Commerce Department announced Thursday. This was a massive decline from the previous month, when a deficit of $138.3 billion was recorded.

The deficit was also significantly lower than economists' expectations of $70 billion. Imports fell by a good 16 percent to $351 billion in April, while exports rose by three percent to $289.4 billion.

There was a deficit in goods trade of $87.4 billion, while the US achieved a trade surplus of nearly $26 billion in services. Many companies had stocked up on goods before President Trump's expected drastic tariff increases, thus attempting to avoid price increases.

Trump declared April 2nd "Liberation Day" and imposed blanket tariffs of 20 percent on numerous countries. Although these tariffs were suspended for 90 days shortly thereafter, basic tariffs remain in effect in many cases.