U.S. Trade Deficit At A Record High

America’s trade deficit swelled to another record in May as oil prices surged, Americans snapped up imported autos, and demand for U.S. exports shrank, reflecting the lingering effects of a global financial crisis.

The Commerce Department reported Tuesday that the trade deficit ballooned to $21.3 billion - a 14.8 percent increase from April’s $18.6 billion deficit.

Imports of goods and services climbed 2.2 percent to a record high of $98.9 billion in May. That reflected an advance in the price of imported oil, to the highest level since late 1997, and a big jump in auto shipments.

At the same time, U.S. exports fell 0.8 percent to $77.6 billion as demand dropped sharply for commercial aircraft, farm products and American-made autos.

So far this year, the U.S. trade deficit is running at an annual rate of $225 billion, more than one-third higher than last year’s record high $164.3 billion.