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Wednesday, October 7, 2015, 10:00

China imports widen US trade deficit

By Reuters

China imports widen US trade deficit

WASHINGTON - US exports took a hit from an ailing global economy in August and imports from China surged, fueling the largest expansion of America's trade deficit in five months.

The data released on Tuesday by the Commerce Department illustrates the US economy's vulnerabilities to a strong dollar and weak demand in foreign markets, which could impose further caution on the Federal Reserve's plans to hike interest rates.

The trade deficit swelled by 15.6 percent to US$48.3 billion in August, according to data that is adjusted for seasonal factors.

Sales of US goods and services abroad fell 2 percent to their lowest level since October 2012.

A 3 percent increase in US imports from China also factored into the widening of the trade deficit. China's yuan currency has depreciated sharply in recent months.

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