The largest deficit was recorded with China ($28.9bn)

The largest deficit was recorded with China ($28.9bn)

The US trade deficit in goods and services increased 1.7% in August from a month earlier, as exports rose but imports increased further – with China again seeing a widening gap.

The deficit reached US$54.9bn for the month, up $0.9bn from $54bn in July, according to trade statistics released by the US Census Bureau. US exports were up 0.2% to $207.9bn, while imports rose by 0.5% to $262.8bn.

Year-to-date, the goods and services deficit increased 7.1% on last year. Exports have dropped 0.2% over the same period a year earlier, while imports have increased 1.2%. Meanwhile, the deficit in goods trade rose 1.1% to $74.2bn in August, while imports of goods gained 0.6% to $213bn.

The largest deficits were recorded with China ($28.9bn), the European Union ($15.6bn), and Mexico ($8.4bn). A deficit of $1.6bn was recorded with Canada.

Surpluses for the month of August were recorded with Germany ($6.9bn), Japan ($6.1bn), India ($2.4bn), Taiwan ($2.3bn) and South Korea ($2.1bn).

China is currently engaged in a trade war with the US. Earlier this month, President Donald Trump confirmed that a proposed increase in an additional tariff on US$250bn worth of imports from China to 30% is still planned for 15 October.

Earlier this week just-style reported that US apparel imports from China – its largest supplier – rose 5% year-on-year in August to 1.35bn SME, with imports from the country up 3% month-on-month from the 1.31bn SME recorded in July.