U.S. Trade Deficit Narrows as Imports Fall

The U.S. trade deficit narrowed in April as imports fell for the first time since December 1998 and oil prices dipped from their 10-year highs, the Commerce Department said. Despite the improvement, economists said the deficit remained alarmingly large at $30.4 billion, just below a record high of $30.61 billion set in March, as a vibrant U.S. economy outpaced its trading partners even after a string of interest rate increases. U.S. exports were essentially unchanged at $86.70 billion, as shipments of U.S.-made civilian aircraft more than doubled. Imports of industrial supplies, food and other products fell slightly to $117.14 billion from $117.33 billion in March. The deficit with Japan surged to a record $7.33 billion in April from $6.83 billion in March. Imports from Japan were the second highest ever recorded. The deficits with Canada and China also rose.