The massive trade deficit between the United States and other nations plunged to the lowest level in seven months in recent weeks; shrinking 2.1% towards the end of April.
According to Market Watch, the US trade gap “tumbled to a seven-month low” heading into the second quarter of 2018, hitting approximately $46.2 billion after being revised downward from $47.2 billion.
Economists credit the decline to higher than expected American exports which “edged up” to a record breaking $211.2 billion, with oil products, soybeans, and corn leading the charge.
“Exports to Mexico also hit an all-time high, but the U.S. trade gap is still larger at this point in the year than it was in the first four months of 2017,” writes Market Watch. “Exports of commercial aircraft fell sharply in April, but it’s a volatile category that jumps around from month to month.”
While the data release by the Commerce Department was compiled before a recent round of tariffs against the United States -mostly by Mexico and Canada- it remains unclear how those taxes will impact US exports.
Read the full report here.