US trade deficit widens to $48.3 billion in August

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — The U.S. trade deficit jumped sharply in August as exports fell to the lowest level in nearly three years while imports increased, led by a surge in shipments of cell phones from China.

The Commerce Department says the deficit increased 15.6 percent to $48.3 billion, the biggest deficit since March. Exports of goods and services dropped 2 percent to $185.1 billion, the lowest level since October 2012, while imports rose 1.2 percent to $233.4 billion.

Exports have been hurt this year by the rising value of the dollar, which makes U.S. goods less competitive on overseas markets, and weaker economic growth in China and other major export markets. Economists say these trends will combine to push the deficit higher and make trade a drag on overall growth this year.


FILE - In this Feb. 12, 2015 file photo, trucks move containers at the Port of Los Angeles. The Commerce Department reports on the U.S. trade gap for August 2015 on Tuesday, Oct. 6, 2015. (AP Photo/Nick Ut, File)

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