U.S. Trade Deficit Widens to a Record Due to Weak Exports, Strong Imports
WASHINGTON -- Continued weak exports and strong imports caused the U.S. trade deficit to widen to a record level in August.</br></br>The Commerce Department reported that the trade gap ballooned to $16.77 billion from a seasonally adjusted $14.55 billion in July. The August total was the largest since the department began keeping the numbers in the current format in 1992, and a department analyst estimated that it was probably the biggest since December 1985. Exports in August slipped to an adjusted $74.84 billion from $75.10 billion in July; it was the lowest figure since the $73.43 billion in shipments in January 1997.</br></br>Meanwhile, a growing number of countries continue to ship goods here to try to sell their way out of recession. Imports in August climbed to an adjusted $91.61 billion from $89.65 billion the previous month. Exports were weak across the board, reflecting the spreading economic crisis. The U.S. deficit with Japan, which is mired in recession, swelled to $5.2 billion in August from $4.54 billion a year earlier. The year-over-year comparisons provide the most accurate measurement, since these figures aren't seasonally adjusted.</br></br>The overall trade deficit with Pacific Rim countries, including Japan, surged to $15.69 billion from $11.65 billion a year earlier. The U.S. trade surplus with Brazil narrowed to $363 million from $535 million a year earlier.</br></br>The trade deficit with China, which hasn't been as affected by the Asian economic ills as most of its neighbors, also expanded in August. The red ink grew to $5.91 billion from $5.14 billion in August 1997.