The surge in crude oil exports offset the wave of AI infrastructure imports, unexpectedly narrowing the US trade deficit in April.

The US trade deficit narrowed in April, as a surge in crude oil exports helped offset the continued growth in imports of equipment powering data center construction. Data released by the US Commerce Department on Tuesday showed that the trade deficit for goods and services in April narrowed by 1.2% from the previous month to $559 billion, below economists' median estimate of $561 billion. In April, exports increased by 2.6% from the previous month, driven mainly by a 60% growth in crude oil exports, while exports of fuel oil and other petroleum products also increased; imports grew by 2%, mainly driven by imports of computers and semiconductors. The interruption of shipping in the Strait of Hormuz due to the Middle East conflicts has suppressed crude oil exports in the region and pushed up oil prices. In this context, US oil and gas producers are trying to fill the supply gap. According to data from the US Energy Information Administration (EIA), US crude oil exports hit a record high in April, while exports of gasoline, diesel, and aviation fuel also increased significantly. The increase in oil prices brought unexpected gains to US energy producers, helping offset the impact of the continuous surge in capital goods imports related to the boom in US data center construction - imports of computers, computer parts, telecom equipment, and semiconductors all continued to grow. The Middle East conflicts have further exacerbated the volatility in US trade data since 2025. In the past year, due to President Trump's constant adjustments to tariff policies, monthly trade data has frequently shown large fluctuations. Although many of these tariff measures were overturned by the US Supreme Court in February of this year, the Trump administration subsequently proposed new tariffs of at least 10% on imports from 60 trade partners. Recent surveys of purchasing managers show that US businesses are stockpiling goods to secure inventory ahead of the expected price increases triggered by the war. This mirrors the situation last year when companies rushed to import goods ahead of the so-called "Liberation Day" tariffs taking effect under Trump. The report released on Tuesday will also serve as a reference for the upcoming negotiations for the United States-Mexico-Canada Agreement (USMCA). The delayed negotiations for the agreement are expected to miss the final deadline of July 1. Data shows that the US trade deficit with Mexico narrowed while the trade deficit with Canada widened. The US trade deficit with China narrowed slightly. The trade deficit with Vietnam further expanded - since the escalation of trade tensions between the US and China in Trump's first term, Vietnam has been one of the main beneficiaries of supply chain shifts. Meanwhile, exports of travel services - spending by foreign visitors in the US - declined in April, dragging down overall service exports.