The U.S. trade deficit widened to a seven-month high in September as imports rose to a record high amid strong domestic demand to offset a recovery in exports.
The Commerce Department said today that the trade gap increased by 1.3% to 54 billion dollars for the fourth month in a row and the August reading was revised to rise to 53.3 billion dollars.
The trade deficit continues to deteriorate despite Trump's protectionist trade policy that left the United States in a bitter trade war with China as well as tariffs with other trade partners including the European Union, Canada and Mexico.
The trade deficit with China jumped 4.3 percent to a record $ 40.2 billion in September. When adjusted for inflation, the gap widened to an all-time high of $ 87 billion in September.
The government reported last week that the trade deficit cut 1.78 percent of GDP in the third quarter, the largest since the second quarter of 1985.
In September, imports of goods and services rose by 1.5% to $ 266.6 billion, the highest level ever. Goods and services exports also rose by 1.5% to $ 212.6 billion.
