Trump's favorite trade-war gauge sank in April as exports plummeted a record amount

• The US trade deficit widened to $49.4 billion in April from $42.3 billion as the coronavirus slammed manufacturers and disrupted trade logistics.
• Exports slid 20.5% through the period to $151.3 billion, the Commerce Department announced Thursday, marking the metric's largest decline in data going back to 1992. Imports plunged 13.7%, another record drop, to $200.7 billion.
• The US trade deficit stands to worsen as the White House escalates tensions with China after months of relative trade-war peace.

US trade slumped to decade lows in April as the coronavirus disrupted manufacturing efforts and stifled global travel.

The nation's goods and services deficit widened to $49.4 billion over the month from $42.3 billion, the Commerce Department announced Thursday. President Donald Trump has frequently referred to the metric as the nation's top trade-war scorecard.

The shortfall now sits at its highest level since August 2019, and rising tensions between the US and China threaten to revive retaliatory trade duties after months of relative peace.

US exports plummeted 20.5% in April to $151.3 billion, the metric's largest drop in data dating back to 1992. Imports slid 13.7%, another record decline, to $200.7 billion.

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"As global and US lockdowns ease, trade flows may begin to recover – leading indicators point that way," Oxford Economics said in a note. "Yet downside risks remain and we expect import and export volumes both to fall at record rates in 2020."

The trade deficit had already been steadily falling through the end of 2019 as the US and China inched toward their phase-one agreement. Yet the coronavirus' toll on global economic activity has erased nearly all progress made last year, and new strains between the two nations could plunge the US into another trade conflict.

The White House announced Wednesday it would ban Chinese airlines from operating passenger flights to the US starting mid-June. The measure came after the Department of Transportation accused China of similarly blocking US carriers within its borders.

Earlier in the week, Chinese government officials ordered firms to halt some imports of US agricultural goods. The sudden move threatens a key element of the nations' trade deal after China initially said it would adhere to purchase goals throughout the coronavirus pandemic.

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