WASHINGTON: The US trade deficit shrank slightly in April, government data showed Tuesday, bolstered by energy exports on a supply crunch following war in the Middle East.
The overall trade gap narrowed 1.2% to US$55.9 billion, said the commerce department. Economists surveyed by Dow Jones Newswires and The Wall Street Journal had expected a US$56.1 billion figure.
US exports of crude oil and petroleum products have surged since US-Israeli strikes on Iran from late February, which triggered Tehran’s retaliation in virtually blocking the Strait of Hormuz.
The strait is a key waterway for energy transit, sending prices soaring.
In April, exports rose 2.6% to US$327.1 billion, fuelled by crude oil, fuel oil and other petroleum products. Exports of capital goods like computers and civilian aircraft also climbed.
US imports, meanwhile, rose by 2% to US$383 billion.
This was boosted by imports of products such as computers and semiconductors, thanks to an ongoing demand for hardware needed in the artificial intelligence buildout.
Businesses have continued spending on high-tech goods linked to data centres, a key driver of economic growth, with President Donald Trump’s tariffs excluding some of these products.
But analysts have warned that imports of goods are likely to remain weak as long as the war on Iran persists, causing gasoline prices to remain elevated and weighing on US households and companies.
