Washington: The US trade gap rose in July mostly due to weaker exports of cars and consumer goods like mobile telephones, the Commerce Department reported yesterday.
The July trade deficit saw its largest swing in three months, marking a modest start at the beginning of the third quarter.
Imports also fell, however, as the weak US dollar pushed up prices for foreign goods and services.
President Donald Trump has made reducing bilateral trade deficits a cornerstone of his economic agenda, with negotiations currently underway to revise the North American and US-Korea free trade agreements.
The July trade deficit rose 0.3 per cent to $43.7 billion, eroding some of the ground gained in May and June, according to the Commerce Department. But it was still less than the $44.6bn analysts had been expecting.
Imports fell $400 million to $238.1bn but exports fell faster, sinking $600m to $194.4bn. For the year-to-date, the trade gap has risen $27.9bn compared with the same period of 2016 to $319bn.
In the all-important goods sector, the July US deficit was also the smallest since December at $65bn. But exports of passenger cars fell by $1bn, while mobile telephones and similar household goods fell $500m for the month.
At the same time, US imports of services and capital goods were the highest on record at $44.1bn and $54.1bn, respectively. And at $10.2bn, US petroleum exports were at their highest in nearly three years.