Washington, Oct. 5 (BNA) The US trade deficit rose to a record high of $73.3 billion in August with a slight increase in exports due to a larger increase in imports, the Associated Press reported.
The Commerce Department reported Tuesday that the monthly trade deficit rose 4.2% in August, rising to an all-time high, surpassing the previous record of $73.2 billion set in June.
The trade deficit represents the gap between what a country exports to the rest of the world and the imports it buys from other countries.
In August, exports rose 0.5% to $213.7 billion, reflecting a recovery in external demand. But imports, even with all the supply chain problems at the ports, rose 1.4% to $287 billion.
The deficit in politically sensitive goods with China increased 10.8 percent to $31.7 billion in August. This year’s deficit with China in eight months was $218.9 billion, up 13.7% over the same period last year.
The total deficit so far this year has been $558.1 billion, up 33.7% from a year ago when pandemic-related lockdowns curbed Americans’ appetite for foreign goods.
Analysts said they expected the increase in the deficit to start to decline now that other economies began to recover and buy more exports. However, some have warned that global supply chain problems could hurt exports and imports in the coming months.
Catherine Taye, the Biden administration’s chief trade negotiator, announced Monday that the United States plans to launch new trade talks with China, but will keep Trump-era tariffs in place as it pushes China to honor pledges it made to buy more. of American goods. services.
The Biden administration has spent months since taking office reviewing economic relations with China, the world’s second-largest economy.