Trade surplus misses estimates as Australia returns to US deficit
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The news: Australia's trade balance with the US has returned to deficit following a three-month surplus, possibly strengthening the country's position against US President Donald Trump's proposed tariffs.
The numbers: New data from the Australian Bureau of Statistics (ABS) shows Australia exported $2.29 billion in goods to the US during the month of April, while importing $3.99 billion.
Meanwhile, Australia's overall trade surplus shrank more than expected in April, falling to $5.41 billion. This compared to average forecasts of $5.96 billion and was down from a $6.9 billion surplus in March.
The softer surplus was driven by a 2.4% slide in exports month over month, including a 4.7% decline in metal ores and mineral exports and a 16.1% drop in coal products.
The context: Prime Minister Anthony Albanese, who is due to meet Trump at the G7 Summit later this month, previously criticised the US President's decision not to exempt Australia from his baseline 10% tariff and additional duties on exports of steel and aluminium.
However, the latest ABS figures may support Australia's negotiation position as Trump targets countries that have a trade surplus with the US.
The source: ABS
