Trade deficit rises to $54.9B in August

Trade deficit rises to $54.9B in August

The U.S. trade deficit grew to $54.9 billion in August, a 1.6 percent increase from July, and a spike over last year.

When compared to the same period last year, the overall trade deficit was up $28.3 billion, or 7.1 percent, as exports dropped slightly and imports spiked.

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Analysts point to President TrumpDonald John TrumpSanders urges impeachment trial 'quickly' in the Senate US sending 20,000 troops to Europe for largest exercises since Cold War Barr criticizes FBI, says it's possible agents acted in 'bad faith' in Trump probe MORE's trade war as a factor in the increased deficit, though the strong dollar and the growing budget deficit are major factors as well.

Trump has pointed to large trade deficits as a sign of economic weakness, and promised to bring them down, even though a large deficit is not necessarily a sign of a bad economy.

Chinese officials are set to arrive in Washington next week in an effort to negotiate a trade deal between the U.S. and China and scale back the trade war.  

Trump has also threatened to increase 25 percent tariffs on $250 billion of Chinese imports by 5 percentage points on Oct. 15, just days after the negotiations.