The Commerce Department says the deficit increased 5.3 percent in April to $37.4 billion, up from an imbalance of $35.5 billion in March. Exports increased 1.5 percent to $182.8 billion but imports rose faster, increasing 2.1 percent to $220.2 billion. The politically sensitive deficit with China surged 16.3 percent to $24.3 billion, a development certain to heighten trade tensions between the world's two largest economies. The U.S. trade deficit, after falling to the lowest point in more than two years, increased in April as a surge in imported goods outpaced a rebound in exports. So far this year, the deficit is running 4.8 percent below the pace set a year ago with a fall in imports offsetting further weakness in U.S. exports, which have been hurt by global weakness.

Source: Fox News June 03, 2016 12:33 UTC