Record imports lifted the U.S. trade deficit to $48.7 billion in October—the highest since January.
The trade gap rose 8.6% in October from $44.9 billion in September, the Commerce Department says. Imports hit a record $244.6 billion in October, and exports were unchanged at $195.9 billion.
A trade deficit means that the United States is buying more goods and services from other countries than it is selling them. A rising trade gap reduces U.S. economic growth.
President Donald Trump views America’s massive trade deficits as a sign of economic weakness. He blames them on bad trade deals and abusive practices by China and other trade partners. Conventional economists argue that trade deficits are largely caused not by flawed trade agreements or cheating by particular countries but by a bigger economic force: Americans spend more than they produce, and imports have to fill in the gap.
So far this year, the United States is running a trade deficit of $462.9 billion, up 11.9% from January through October 2016. U.S. exports are up 5.3% this year; a weaker dollar has made U.S. goods less expensive overseas. Imports are up 6.5% the first 10 months of 2017.
