U.S. trade deficit at 15-month high

Americans spent $40.4 billion US more on imported goods than they earned in exports in March, the U.S. Commerce Department reported Wednesday. Economists saw the 2.5 per cent increase in the trade deficit — to a 15-month high — as a sign of a rebounding economy and rising demand.

The White House has been facing growing political pressure to impose trade sanctions on China if Beijing doesn't allow its currency to rise in value against the dollar. Treasury Secretary Timothy Geithner was expected to raise the issue when he and Secretary of State Hillary Clinton go to China for two days of high-level talks later this month.

U.S. exports should be helped by a strengthening global economy, but the question is how the debt crisis in the 16 countries of the eurozone — which buy 15 per cent of American exports — will affect trade.

The White House has been facing growing political pressure to impose trade sanctions on China if Beijing doesn't allow its currency to rise in value against the dollar. Treasury Secretary Timothy Geithner was expected to raise the issue when he and Secretary of State Hillary Clinton go to China for two days of high-level talks later this month. U.S. exports should be helped by a strengthening global economy, but the question is how the debt crisis in the 16 countries of the eurozone — which buy 15 per cent of American exports — will affect trade.

CBC News - Money - U.S. trade deficit at 15-month high