US Cross-Border Trade Weak In April

April was a very weak month for US cross-border trade headlined by a monthly deficit of $50.8 billion. Exports fell 2.2 percent in the month to $206.8 billion while imports also fell 2.2 percent, to $257.6 billion.

The bilateral deficit with China totaled $26.9 billion in April, and though higher than March's $20.7 billion, nevertheless extends a narrowing trend. This deficit has averaged $26.0 billion per month so far this year vs $34.9 billion per month last year.

Exports of foods & feeds rose slightly in April to $11.2 billion while imports of foods & feeds fell slightly to $12.8 billion. Exports were otherwise mostly lower including a sharp $2.7 billion drop in capital goods to $44.7 billion that reflects a $2.3 billion decline for civilian aircraft exports. Imports, outside of oil, mostly fell including a $1.0 billion decline in vehicles to $30.9 billion and a $1.1 billion decline in consumer goods to $1.1 billion.

April's data marks a signpost for trade activity going into May, a month when US trade friction with China and Mexican rose significantly. Though declines for imports will help the US trade balance, declines for exports will not.