New Record High For US Trade Deficit With China

Posted October 13th, 2011 at 11:45 am (UTC-5)
Leave a comment

The U.S. trade deficit with China reached a record high in August.

The gap between what China buys from U.S. companies and what Americans sell in the Chinese market was $29 billion in August.

Thursday’s report from the Commerce Department says the overall U.S. trade deficit with the world was nearly unchanged during the month.

The trade gap with China comes at a politically sensitive time when the U.S. Senate has just passed a bill to impose tariffs on certain Chinese-made goods unless Beijing stops its alleged manipulation of its currency. The tariff bill would have to overcome opposition in the Republican-controlled House of Representatives and be approved by the president before it could become law.

A weak Chinese currency gives Chinese goods a price advantage in the U.S. market, and raises the cost of American-made products to Chinese consumers.

A separate report from the Labor Department says the number of Americans signing up for unemployment compensation declined by 1,000 to a total of 404,000 last week. The U.S. unemployment rate, which is calculated from a separate study, is a relatively high 9.1 percent.