US goods imports experienced a significant decline of nearly 20% in April, marking the largest fall on record. This drop was attributed to tariffs imposed by President Donald Trump, which led companies to halt shipments to the United States. According to the Census Bureau’s advance economic indicators report released on Friday, imports totaled $276.1 billion, a decrease of 19.8% from March.
This decline represents the most substantial drop in data dating back to 1992 and contrasts sharply with March’s activity, where companies increased foreign purchases in anticipation of Trump’s April 2 tariff announcement.
The reduction in imports aligns with a trend of cautious consumer spending amid economic uncertainty. Separate data from the Bureau of Economic Analysis indicated a slowdown in consumer spending growth from 0.7% in March to 0.2% in April.
The findings highlight the disruptions to international trade caused by the tariffs, which have affected markets and altered US commercial relations globally. The anticipation of Trump’s April tariffs led companies to purchase foreign goods in advance, contributing to a 0.2% annualized contraction in US GDP for the first quarter, a first since 2022. However, the decline in April imports suggests potential growth in the second quarter as companies turn to domestic goods.
Consumer goods imports dropped significantly by 32% to $69.6 billion in April, according to seasonally adjusted Census Bureau data. Industrial supplies fell by 31% to $51.8 billion, and automotive imports decreased by 19% to $33.6 billion.
US importers now face widespread levies on foreign goods, including high tariffs on Chinese products and a general 10% levy. The status of these tariffs has been volatile, causing uncertainty for companies and market fluctuations.
A temporary tariff reduction agreement was reached with China two weeks ago, but tensions seemed to rise as President Trump accused Beijing of violating the agreement. Although the imposition of steeper tariffs on most countries was paused on April 9, overall tariff levels remain historically high.
A US trade court deemed Trump’s “liberation day” tariffs illegal, but an appeals court subsequently allowed them to remain in effect until a government objection is reviewed.
