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US trade deficit rises on record imports from China

US trade deficit rises on record imports from China
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Record imports from China helped drive up the U.S. trade deficit 8.6 percent in October as retailers stocked up for the holidays, the Commerce Department reported Tuesday.

Goods and services coming into the U.S. from China, Mexico and the European Union all hit record levels, which boosted the trade gap to $48.7 billion from $44.9 billion in September. It's the highest monthly trade deficit recorded since President Trump took office.

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Imports hit a record $244.6 billion in October on growing U.S. demand amid an improving economy, while exports were unchanged from September, at $195.9 billion. 

Goods and services from China totaled $48.2 billion, while EU imports amounted to $39.4 billion and imports from Mexico grew to $28.7 billion, which are all record highs.

“We have trade deficits with everybody,” Trump said on Tuesday ahead of a lunch with Republicans urging the U.S. to remain in NAFTA. 

“Virtually every country in the world we have trade deficits with. And that's going to be changing —it's already changing — but it's going to be changing fast,” he said.

The Trump administration has focused its trade policy on efforts to lower the trade deficit, arguing that the United States has been treated unfairly in trade deals such as the North American Free Trade Agreement (NAFTA).

But trade deficits this year — which have reached $462.9 billion and are up 11.9 percent from last year — are on track to eclipse 2016 levels and will likely climb to more than $500 billion by year's end.

Trump, who has been highly critical of the U.S. trade deficit with China, lamented the numbers on Tuesday. He said the US has a trade deficit with virtually every country in the world.

"We have tremendous losses with Mexico and tremendous losses with Canada," he said.

The U.S. Chamber of Commerce said in a May report that they disagree "with the contention that the goods trade deficit is an appropriate gauge of whether a particular set of trade policies — or trade agreements — is delivering benefits to the American people more broadly."

The reason for the deficit is that “Americans are spending more than they produce.”

“The overall trade deficit is the result of the saving and investment decisions of U.S. households and businesses," the report said.

Exports also hit several high points, with exports to Mexico ($22.1 billion) and Brazil hitting the highest levels since October 2014.

Meanwhile, exports to China, $13 billion, were the highest since December 2013.

Trump has in the past blamed previous U.S. administrations for failing to crack down on China amid widening trade gaps.

"After all, who can blame a country for being able to take advantage of another country for the benefit of its citizens,” Trump said while standing next to Chinese President Xi Jinping during his recent trip through Asia.

"I give China great credit, but in actuality I do blame past administrations for allowing this out-of-control trade deficit to take place," Trump said.

During his five-nation tour across Asia, the president promoted business deals in Japan, South Korea and China as ways to help lower trade deficits with major trading partners across the Pacific Rim.

On Tuesday, Trump, senior administration officials and U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMORE had  a lunch meeting with Republican Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderSanders wants pharma CEOs to testify on opioid crisis Trump expects us to trade clean air and water for updated infrastructure House GOP warming to ObamaCare fix MORE (Tenn.), Joni ErnstJoni Kay ErnstSenators call for probe into US Olympic Committee, USA Gymnastics after abuse scandal Senate Republicans call on Trump to preserve NAFTA Dems go on the attack during EPA chief's hearing MORE (Iowa), Deb FischerDebra (Deb) Strobel FischerSenate Republicans call on Trump to preserve NAFTA US trade deficit rises on record imports from China Flake, GOP senators to meet with Trump on trade MORE (Neb.), Jeff FlakeJeffrey (Jeff) Lane FlakeMcConnell: 'Whoever gets to 60 wins' on immigration Huckabee Sanders: Dems need to decide if they 'hate' Trump 'more than they love this country' Trump spokeswoman fires back at Flake: 'His numbers are in the tank' MORE (Ariz.), Cory GardnerCory Scott GardnerRepublicans interested in Romney leading NRSC: report Overnight Finance: Mnuchin promises new Russia sanctions after uproar | Dow drops ahead of Trump State of the Union | GOP senators call on Trump to protect NAFTA | Regulators subpoena major bitcoin exchange Senate Republicans call on Trump to preserve NAFTA MORE (Colo.) and Lindsey GrahamLindsey Olin GrahamMcConnell: 'Whoever gets to 60 wins' on immigration Overnight Tech: Uber exec says 'no justification' for covering up hack | Apple considers battery rebates | Regulators talk bitcoin | SpaceX launches world's most powerful rocket Overnight Cybersecurity: Tillerson proposes new cyber bureau at State | Senate bill would clarify cross-border data rules | Uber exec says 'no justification' for covering up breach MORE (S.C.) to discuss trade.

The group of senators requested the meeting to discuss trade priorities, especially the future of NAFTA.

"We're going to look at NAFTA very seriously," Trump said. "It's going to very successful."

- This story was updated at 2 p.m. and 3:04 p.m.