Chinese imports widen U.S. trade gap
By Howard Schneider
The U.S. trade deficit surged in August as a jump in imports from China overwhelmed a meager rise in American exports. The deficit with China rose from $25.9 billion to just above $28 billlion.
The new data are likely to fuel the trade tensions that have been rising between the two countries and stoke pressure for China to revise some of its economic policies -- chiefly the close management of its currency.
Of particular note: U.S. exports barely increased, rising just $300 million from July to $153.5 billion. The Obama administration is hoping to double U.S. exports over the next five years, but the last few months have shown only sluggish growth. U.S. sales abroad increased just more than six percent for the first eight months of the year.
The country imported $196.1 billion worth of goods and services in August. The resulting $46 billion trade deficit represented a roughly 10 percent increase over July.
| October 14, 2010; 11:02 AM ET
Categories: China, International Economics, Trade, U.S. Economy
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