Weaker Europe Demand Raises U.S. Trade Deficit
By wchung | 07 May, 2026

A sailboat passes a container ship being unloaded at the Port of Oakland in Oakland, Calif. The U.S. trade deficit rose to a 15-month high as rising oil prices pushed crude oil imports to the highest level since the fall of 2008, offsetting another strong gain in exports. (AP Photo/Ben Margot, file)

The U.S. trade deficit rose to the highest level in 16 months as exports fell for the second time in three months, a potentially worrisome sign that Europe’s debt troubles are beginning to crimp American manufacturers.

The Commerce Department says the trade deficit widened to $40.3 billion in April, up by 0.6 percent from March. U.S. exports dropped 0.6 percent while imports declined by 0.4 percent.

U.S. manufacturing has been a standout performer as the U.S. recovers from the worst recession in decades. But the concern is that Europe’s debt crisis will slow growth in that part of the world and dampen demand in a key U.S. export market.

MARTIN CRUTSINGER, AP Economics Writer WASHINGTON