The trade deficit dropped sharply in April even though the politically sensitive imbalance with China increased to the highest level in three months. Strong overseas demand pushed American exports to an all-time high.The Commerce Department reported Friday that the gap between what America sells abroad and what it imports totaled $58.5 billion in April, a 6.2 percent decline from the March deficit.
Exports edged up 0.2 percent to a record $129.5 billion, reflecting strong sales of soybeans and other farm products, commercial aircraft and industrial machinery. Imports fell 1.9 percent to $188 billion as foreign oil shipments dropped slightly even though the average price of crude oil increased.
The overall improvement in the deficit was larger than the small decline analysts had been expecting. It provided support for those who are forecasting that the deficit will narrow this year after setting records for five consecutive years.
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