THE US trade deficit rose 5.2 per cent in April to US$47.6 billion from March - its highest level since January with the politically sensitive trade gap with China registering a sharp increase.
The Commerce Department said exports dropped 0.3 per cent to $191 billion, pulled down by a drop in automotive exports. Imports rose 0.8 per cent to $238.6 billion as Americans bought more foreign-made cellphones and other consumer goods.
A widening trade deficit is a drag on economic growth. US President Donald Trump made the trade gap a centerpiece of his campaign for the White House. His administration has vowed to reduce the deficit, blaming it on abusive practices by America's trading partners.
The deficit in goods with China rose by 12.4 per cent to $27.6 billion in April, AP reported.
So far this year, the trade deficit is up 13.4 per cent from a year earlier, to $186.6 billion. Exports are up 6.1 per cent to $765.6 billion this year, but imports are up more - 7.5 per cent to $952.2 billion. So far in 2017, the US is running a $268.7-billion deficit in goods and an $82.1-billion surplus in services such as banking and tourism.
Mr Trump recently singled out Germany for criticism, saying it is unfairly benefitting from a weak euro. When a country's currency is weak, its products enjoy a price advantage in foreign markets. The trade deficit with Germany rose 4.3 per cent in April, to $5.5 billion.
US April trade deficit rises 5.2pc to highest level since January