The US trade deficit narrowed sharply in April, with goods imports falling 20 percent from the previous month. The decline in goods shipments was, however, not uniform.
A Moneycontrol analysis of data released on June 5 reveals that imports of copper, non-monetary gold, spacecraft and cotton recorded big gains even as the broader trade landscape contracted.
The US trade deficit was down 55.5 percent at $61.6 billion, a 19-month low, down from $138 billion in March.
Among the key exceptions to the downward trend were copper imports, which surged 64 percent, rising from $1.3 billion in the previous month to $2.1 billion in April.
The US sources a significant portion of its copper from Chile, Canada, and Mexico. While overall imports from South and Central America declined just 2 percent, Canada's exports to the US dropped 17 percent during the month.
Non-monetary gold imports, which refer to the precious metal not held by central banks, rose 27 percent, from $741 million to $940 million.
The increase aligns with rising global gold prices, up 17 percent since March 1, and 8 percent higher since April 2, when President Donald Trump announced reciprocal tariffs.
Cotton imports also grew, rising 14 percent in April. Imports of footwear increased 2.4 percent while those of computers remained flat. However, cellphone imports, largely dependent on China and India, declined 28.6 percent, highlighting the sectors vulnerability to geopolitical pressures.
Auto, metals and pharma imports plunge
Among the most affected sectors were finished metal products, which declined 80.4 percent, and passenger vehicles, down 33 percent. Imports of iron and steel were down nearly 20 percent, much before Donald Trump's decision to double tariffs on steel and aluminium to 50 percent. These new levy kicked in from June 4.
Pharmaceuticals, an important export category for India, saw a 52 percent drop in shipments at $24.2 billion in April. Imports of gem-quality diamonds, another major Indian export, dropped 35 percent to $882 million.
The effect of declining imports was reflected in India’s exports to the US, which fell 15 percent in April. In contrast, Vietnam recorded a 4 percent increase in exports to the US.
China's exports to the US were down 19 percent, as it faced despite tariffs exceeding 100 percent in April. The two countries in May called time on their tariff war, with the US and China each lowering duties by 115 percent while retaining an additional 10 percent tariff.
Imports from the European Union declined even more sharply — down 36 percent— as US President Donald Trump threatened a 50 percent tariff on EU goods. Among EU countries, Germany’s exports to the US fell 14 percent.
The UK, whose auto sector is heavily reliant on the US market, saw a 32 percent decline. The country quit EU in 2020.
On the other hand, US exports to India rose 21 percent from March, signalling a potential rebalancing of bilateral trade.
India's merchandise trade deficit in April was down 31 percent from March, sharper than China’s 19 percent contraction.
