Trade gap increases to $53.2B

Associated Press

WASHINGTON

Record imports drove the U.S. trade deficit up for the third-straight month in August. The deficit in the trade of goods with China and Mexico hit records.

The Commerce Department said Friday that the trade gap – the difference between what America sells and what it buys abroad – rose to $53.2 billion in August from $50 billion in July. The August reading was the highest since February.

Imports rose 0.6 percent to a record $262.7 billion on higher shipments of cellphones and autos; exports slid 0.8 percent to $209.4 billion.

The U.S. ran a $76.7 billion deficit in the trade of goods such as machinery and cars. That gap was partially offset by a $23.5 billion surplus in the trade of services such as banking and tourism.

President Donald Trump campaigned on a pledge to bring down U.S. trade deficits and has slapped taxes on imported steel, aluminum and on many Chinese products, drawing retaliatory tariffs from U.S. trading partners.