US trade deficit hits record $73.3B in August

The U.S. trade deficit increased to a record $73.3 billion in August as a small gain in exports was swamped by a much larger increase in imports.

The Commerce Department reported Tuesday that the monthly trade deficit increased 4.2% in August, rising to an alltime high, surpassing the previous record of $73.2 billion set in June. The trade deficit represents the gap between what the country exports to the rest of the world and the imports it purchases from other countries.

In August, exports rose 0.5% to $213.7 billion, reflecting revived overseas demand. Imports were up an even stronger 1.4% to $287 billion.