U.S. trade deficit narrows as exports hit record high in April

The same conflict shaking global oil markets also helped improve a key U.S. trade measure. As Middle East violence disrupted shipping through the Strait of Hormuz, U.S. exports climbed to a record $327.1 billion in April, narrowing the trade deficit to $55.9 billion even as Americans remained exposed to higher fuel prices and wider economic turbulence.

The Commerce Department said exports rose 2.6% from March, adding $8.3 billion in a single month, while imports increased 2.0% to $383.0 billion. The U.S. Census Bureau and Bureau of Economic Analysis said the April deficit was down from a revised $56.6 billion in March and slightly better than economists had expected. The trade gap, which had weighed on gross domestic product for two straight quarters, may yet provide some support for second-quarter growth if the export strength holds.

Much of April’s gain came from goods. Goods exports rose $8.7 billion to $221.3 billion, led by capital goods, including computers and civilian aircraft, and by industrial supplies and materials. Crude oil exports jumped $6.4 billion, fuel oil rose $1.3 billion and other petroleum products increased $1.0 billion. That surge offset declines in nonmonetary gold and other precious metals.

The bigger export picture also looks stronger than the monthly headline alone suggests. Through April, the goods and services deficit was down $213.5 billion, or 49.1%, from the same period in 2025. Exports were up $128.2 billion, or 11.3%, while imports were down $85.3 billion, or 5.5%. Over the three months ending in April, the average goods and services deficit was $55.8 billion, with average exports at $319.2 billion and average imports at $375.0 billion.

The energy backdrop helps explain the paradox. The Congressional Research Service said Iran declared the Strait of Hormuz “closed” starting March 4, 2026, after U.S. and Israeli military operations against Iran and Iranian actions in the Persian Gulf disrupted shipping. Roughly 27% of the world’s maritime trade in crude oil and petroleum products and about 20% of global LNG trade passes through the strait. Brent crude jumped 8% from $71.32 on Feb. 27 to $77.24 on March 2, and later at one point broke $100 a barrel.

The International Energy Agency said global oil markets were in a period of heightened volatility because of the de facto closure of the strait. The World Bank projected energy prices would surge 24% in 2026 as the Middle East war hit commodity markets, a reminder that a stronger U.S. export number can coexist with a more fragile global economy and higher costs at the pump.