WASHINGTON -- America's trade deficit surged in May to another record as foreign oil prices jumped to their highest level since late 1997 and U.S. exporters were battered by the global economic crisis.
The Commerce Department reported Tuesday that the trade deficit ballooned to $21.3 billion -- a 14.8 percent increase from the $18.6 billion deficit in April.Imports of goods and services climbed 2.2 percent to a record high of $98.9 billion in May, reflecting higher oil prices and a big jump in auto shipments.
At the same time, U.S. exports fell 0.8 percent to $77.6 billion as demand dropped sharply for commercial aircraft, farm products and American-made autos.
So far this year, the U.S. trade deficit is running at an annual rate of $225 billion, more than one-third higher than last year's $164.3 billion, which had been a record high.
The swelling deficit presents a major political headache for the Clinton administration, which is having to fight off growing cries for protection from a number of U.S. industries.
American manufacturers and farmers have been battered by the global economic turmoil, which has pushed a number of Asian countries into steep recessions and forced U.S. companies to compete with a flood of cheaper imports.
Since March 1998, manufacturers have cut 488,000 jobs and U.S. farmers are suffering their worst economic crisis in a decade.
The overall U.S. economy, however, has continued to post robust growth as consumer spending has remained strong, powered by the lowest unemployment rate in nearly three decades.