Trade deficit widened in November

The nation's trade deficit widened in November for the first time since the summer as imports hit a record high and exports fell.

The Commerce Department said Friday that the gap expanded to $47.8 billion from a shortfall of $43.3 billion in October, a 10.4 percent increase and the highest level since June.

Imports increased to a record-high $225.6 billion, up 1.3 percent, driven primarily by an increase in demand for oil along with rising prices, which eclipsed $100 a barrel in November.

The trade deficit had dropped each month since hitting a 2011 high of $52 billion in June, as the European debt crisis escalated. 

Exports, which had hit a record high of $180.6 billion in September, dropped for the second straight month in November down to $177.8 billion, a 0.9 percent drop as fewer autos and aircraft were shipped abroad.

U.S. trade officials are still ironing out final details of three trade deals with Korea, Panama and Colombia. The Korean agreement, the most economically potent for the United States, is likely to go into force first, possibly some time next month. 

Supporters argue that the trade deals, which took years to get through Congress, will help President Obama reach his goal of doubling exports by 2015. 

Meanwhile, the trade deficit with China fell to $26.9 billion from $28.1 billion in October.

"We are on pace for a record annual trade deficit with China in 2011. That's not good news for American workers, our fiscal position, or our strategic interests," said Scott Paul, executive director of the Alliance for American Manufacturing.

The Obama administration is considering forming a task force that would examine ways to assure China complies with international trade laws.

Lawmakers have pushed for passage of currency manipulation legislation that would punish the nation with higher tariffs if Chinese officials don't allow their currency, the yuan, to appreciate at a faster pace. 



"Such a task force is desperately needed and long overdue," Paul said. "The challenge will be ensuring that the task force has the authority to take bold steps to lower our trade deficit with China."