The US trade deficit hit a record $ 73.3 billion in August, as a slight gain in exports was overwhelmed by a much larger increase in imports. The Commerce Department reported on Tuesday that the monthly trade deficit rose 4.2% in August, reaching an all-time high, surpassing the previous record of $ 73.2 billion set in June.
The trade deficit represents the difference between what the country exports to the rest of the world and the imports it buys from other countries.
In August, exports rose 0.5 percent to US $ 213.7 billion, reflecting the recovery in foreign demand. But imports, even with all the supply chain issues at the ports, rose still more than 1.4% to $ 287 billion.
The politically sensitive deficit with China jumped 10.8% to $ 31.7 billion.
Katherine Tai, the Biden administration’s top trade negotiator, said on Monday that the United States plans to launch new trade talks with China, but will maintain Trump-era tariffs as it pushes China to respect the commitments it made to buy more American products and services.
The Biden administration has spent months since taking office examining economic relations with China, the world’s second-largest economy.
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