01:41 PM EDT, 06/05/2025 (MT Newswires) -- The US trade deficit fell the most on record in April as imports plunged following the previous month's jump ahead of anticipated tariffs.

The goods and services deficit shrank by nearly 56% to $61.62 billion -- the lowest level since September 2023, the Census Bureau and the Bureau of Economic Analysis reported Thursday. The consensus in a survey compiled by Bloomberg was for a deficit of $66 billion.

Imports fell 16% -- the biggest on record -- to $350.99 billion in April. Exports grew 3% to an all-time high of $289.37 billion, marking the fourth consecutive rise.

"The narrowing of the deficit points to stronger economic growth in the second quarter as net exports are expected to boost the calculation for (gross domestic product) after shaving off nearly 5% to activity in the first quarter," said Lindsey Piegza, chief economist at Stifel.

The US' real GDP contracted at a 0.2% annualized rate in the March quarter, marking the first quarterly decline in three years, according to a second estimate released by the Bureau of Economic Analysis last week.

In April, President Donald Trump declared a 90-day pause on certain tariffs for countries that didn't retaliate to his reciprocal duties. Last month, the US and China agreed to suspend most tariffs on each other's goods for 90 days, though both have recently accused each other of violating their preliminary trade deal.

Trump said in a social media post Thursday that he had a call with Chinese President Xi Jinping that "resulted in a very positive conclusion for both countries."

The US saw a goods trade deficit of $19.16 billion with the European Union in April, narrowing from $47.56 billion in March, according to government data. The goods trade gap with China dropped to $17.19 billion from $17.93 billion.

The goods trade surplus with the UK increased to $4.37 billion from $1.69 billion, while the deficit with Japan widened to $6.72 billion from $6.17 billion.

"Goods imports should rebound in May on concern that the 90-day pause on reciprocal duties won't get extended, and with China's 125% reciprocal duty now temporarily slashed to 10%," said Sal Guatieri, senior economist at BMO Capital Markets.

Recently, the US Court of International Trade ruled that Trump overstepped his authority by imposing duties under the International Emergency Economic Powers Act, but a federal appeals court temporarily paused that decision.