The ongoing conflict in the Persian Gulf likely led to a slight 1.2% decline in the overall goods and services deficit in April, coming in at $55.9 billion, based on Bureau of Economic Analysis (BEA) data released on Tuesday.
April’s numbers are framed within a full two months of occasional bombings in Iran, neighboring Gulf states, and a blockade of the Strait of Hormuz. As a result, some countries turned to the U.S. for fuel, and exports rose substantially as a result. Crude oil exports increased $6.4 billion. Fuel oil such as gasoline and jet fuel increased by $1.3 billion. Other petroleum products such as engine lubricants increased by another $1 billion. Meanwhile, travel services decreased by around $300 million, which can at least partially be tied to concerns over flight costs and airport safety.
However, per usual, the goods trade suggests another story. AI data center build-out, and the increasing digitalization of the U.S. economy, saw a $2.2 billion increase in computer imports, a $1.7 billion increase in semiconductors, and another $1.6 billion increase in telecommunications equipment.
The goods deficit for April was well within its normal band, this time at $83.6 billion. The April goods gap was bigger than it was in both January and February.
For the year, export values are higher than they were in the first four months of 2025 ($834.5 billion Jan-Apr 2026 vs. $725.2 billion Jan-Apr 2025) while import values are less ($1.2 trillion Jan-Apr 2026 vs. $1.3 trillion Jan-Apr 2026). While the values are important, it is ultimately the volume that matters more. BEA’s monthly spreadsheet does not list trade by volume.
The Jan-Apr goods deficit is $334.5 billion, down from $543 billion in the same period last year. Much of this has been helped by the commodities trade, led by fuel oils and nonmonetary gold (mostly used for investments) rather than industrial goods exports.
Crude oil and nonmonetary gold were the biggest exports in April by value. Crude oil exports were $17.08 billion with nonmonetary gold at $11.9 billion. Pharmaceutical exports were in third at $9.4 billion and was the only deficit of the three. The U.S. imported $14.6 billion worth of pharmaceuticals.
Top Five Imports
Pharmaceutical import values year-to-date have surprisingly collapsed versus a year ago, but computers have erased that differential. Computers were far and away the lead import item in April by value.
Item
April 2026
March 2026
YTD 2026
YTD 2025
Computers
$34.17 billion
$31.99 billion
$127.74 billion
$55.40 billion
Computer accessories
$18.16 billion
$17.56 billion
$66.98 billion
$468.56 billion
Pharmaceuticals
$14.66 billion
$13.56 billion
$53.22 billion
$130.83 billion
Telecom equipment
$14.24 billion
$12.65 billion
$51.41 billion
$34.54 billion
Passenger cars
$14.08 billion
$14.98 billion
$54.60 billion
$65.71 billion
Top Five Trading Partners
The trend of U.S. companies moving supply chains out of China continues unabated. Mexico and the European Union are the leading source of imports in April and year-to-date. North American and European Union suppliers are starting to solidify themselves as being the go-to hub for importers with Asia. Taiwan is the stand-out market now in Asia due to the growth of fintech and the artificial intelligence race against China.
Trading Partner
April Imports
YTD Trade Deficit
Mexico
$50.69 billion
$188.72 billion
European Union
$48.92 billion
$173.45 billion
Taiwan
$24.10 billion
$91.52 billion
Vietnam
$20.40 billion
$76.26 billion
China
$19.78 billion
$80.66 billion
Vietnam is the leader in the China+1 supply chain strategy, a strategy importers incorporated just prior to the onset of the Section 301 tariff regime in 2017-18, mostly due to rising costs of doing business in the mainland. However, Vietnam is also an offshore manufacturing hub for Chinese business. Moreover, Taiwan reunification remains a goal for Beijing, suggesting that the China-Taiwan-Vietnam access reveals American reliance on China companies for the foreseeable future, despite a continual derisking from mainland suppliers.
“A deficit that falls on a wartime oil spike and gold flowing offshore for investment says nothing about whether America is producing more,” said CPA’s senior economist, Mihir Torsekar. “The goods gap is unchanged and AI demand keeps pulling in chips and computers, while the shift to Vietnam and Taiwan still routes back through Chinese firms. The headline improves; the structural problem stays put.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
Trade Deficit Falls in April, Driven Largely by Persian Gulf Disruptions
The ongoing conflict in the Persian Gulf likely led to a slight 1.2% decline in the overall goods and services deficit in April, coming in at $55.9 billion, based on Bureau of Economic Analysis (BEA) data released on Tuesday.
April’s numbers are framed within a full two months of occasional bombings in Iran, neighboring Gulf states, and a blockade of the Strait of Hormuz. As a result, some countries turned to the U.S. for fuel, and exports rose substantially as a result. Crude oil exports increased $6.4 billion. Fuel oil such as gasoline and jet fuel increased by $1.3 billion. Other petroleum products such as engine lubricants increased by another $1 billion. Meanwhile, travel services decreased by around $300 million, which can at least partially be tied to concerns over flight costs and airport safety.
However, per usual, the goods trade suggests another story. AI data center build-out, and the increasing digitalization of the U.S. economy, saw a $2.2 billion increase in computer imports, a $1.7 billion increase in semiconductors, and another $1.6 billion increase in telecommunications equipment.
The goods deficit for April was well within its normal band, this time at $83.6 billion. The April goods gap was bigger than it was in both January and February.
For the year, export values are higher than they were in the first four months of 2025 ($834.5 billion Jan-Apr 2026 vs. $725.2 billion Jan-Apr 2025) while import values are less ($1.2 trillion Jan-Apr 2026 vs. $1.3 trillion Jan-Apr 2026). While the values are important, it is ultimately the volume that matters more. BEA’s monthly spreadsheet does not list trade by volume.
The Jan-Apr goods deficit is $334.5 billion, down from $543 billion in the same period last year. Much of this has been helped by the commodities trade, led by fuel oils and nonmonetary gold (mostly used for investments) rather than industrial goods exports.
Crude oil and nonmonetary gold were the biggest exports in April by value. Crude oil exports were $17.08 billion with nonmonetary gold at $11.9 billion. Pharmaceutical exports were in third at $9.4 billion and was the only deficit of the three. The U.S. imported $14.6 billion worth of pharmaceuticals.
Top Five Imports
Pharmaceutical import values year-to-date have surprisingly collapsed versus a year ago, but computers have erased that differential. Computers were far and away the lead import item in April by value.
Item
April 2026
March 2026
YTD 2026
YTD 2025
Computers
$34.17 billion
$31.99 billion
$127.74 billion
$55.40 billion
Computer accessories
$18.16 billion
$17.56 billion
$66.98 billion
$468.56 billion
Pharmaceuticals
$14.66 billion
$13.56 billion
$53.22 billion
$130.83 billion
Telecom equipment
$14.24 billion
$12.65 billion
$51.41 billion
$34.54 billion
Passenger cars
$14.08 billion
$14.98 billion
$54.60 billion
$65.71 billion
Top Five Trading Partners
The trend of U.S. companies moving supply chains out of China continues unabated. Mexico and the European Union are the leading source of imports in April and year-to-date. North American and European Union suppliers are starting to solidify themselves as being the go-to hub for importers with Asia. Taiwan is the stand-out market now in Asia due to the growth of fintech and the artificial intelligence race against China.
Trading Partner
April Imports
YTD Trade Deficit
Mexico
$50.69 billion
$188.72 billion
European Union
$48.92 billion
$173.45 billion
Taiwan
$24.10 billion
$91.52 billion
Vietnam
$20.40 billion
$76.26 billion
China
$19.78 billion
$80.66 billion
Vietnam is the leader in the China+1 supply chain strategy, a strategy importers incorporated just prior to the onset of the Section 301 tariff regime in 2017-18, mostly due to rising costs of doing business in the mainland. However, Vietnam is also an offshore manufacturing hub for Chinese business. Moreover, Taiwan reunification remains a goal for Beijing, suggesting that the China-Taiwan-Vietnam access reveals American reliance on China companies for the foreseeable future, despite a continual derisking from mainland suppliers.
“A deficit that falls on a wartime oil spike and gold flowing offshore for investment says nothing about whether America is producing more,” said CPA’s senior economist, Mihir Torsekar. “The goods gap is unchanged and AI demand keeps pulling in chips and computers, while the shift to Vietnam and Taiwan still routes back through Chinese firms. The headline improves; the structural problem stays put.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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