The U.S. trade deficit jumped in August as exports fell to their lowest levels in almost three years. Meanwhile, imports increased, led by a surge of shipment of cellphones from China. The deficit grew 15.6 percent to $48.3 billion, the biggest deficit since March, according to a report from the U.S. Commerce Department this week.
Exports of goods and services dropped 2 percent to $185.1 billion, the lowest level since October 2012. Meanwhile, imports rose 1.2 percent to $233.4 billion. The rising value of the U.S. dollar has hurt exports by making U.S. goods less competitive on overseas markets.
Meanwhile, China, the world’s second-largest economy, is experiencing weaker economic growth and many emerging market economies are being battered by a plunge in commodity prices. Canada, the United States largest trading partner, is suffering through a recession.
So far this year, the trade deficit is at an annual rate of $531.6 billion, 4.6 percent higher than last year’s deficit of $508.3 billion.
