U.S. trade deficit hits record $73.3 billion in August

WASHINGTON – The U.S. trade deficit increased to a record $73.3 billion in August as a small gain in exports was swamped by a much larger increase in imports.

The Commerce Department reported Tuesday that the monthly trade deficit increased 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 the country exports to the rest of the world and the imports it purchases from other countries.

In August, exports rose 0.5% to $213.7 billion, reflecting revived overseas demand.

But imports, even with all the supply chain problems at ports, were up an even stronger 1.4% to $287 billion.

The politically sensitive goods deficit with China surged 10.8% to $31.7 billion in August.

This year’s deficit with China through eight months totals $218.9 billion, up 13.7% from the same period a year ago.

The total deficit so far this year $558.1 billion, 33.7% higher than last year when pandemic-related shutdowns curbed Americans’ appetite for foreign goods.

Analysts said they expect the deficit surge will start to lessen now that other economies are beginning to revive and purchase more exports.