Trade Gap Expands on Higher Oil Prices

Washington, DC, March 12, 2008-- The U.S. trade deficit expanded in January as imports rose to all-time highs.

The Commerce Department on Tuesday said the trade gap increased to $58.2 billion. That was up from $57.9 billion in December and was the highest since November.

Imports climbed to a record high of $206.4 billion in January, partly because of increasing oil prices and a soaring demand. Exports of goods and services reached a record high of $148.2 billion in January. The declining value of the U.S. dollar is helping make U.S goods cheaper abroad.

The average price of imported crude oil hit a record $84.09 a barrel in January, and the U.S. spent $27.1 billion on oil in January.

Oil prices on Tuesday briefly crossed $110 a barrel.

The U.S. trade deficit with China also grew to $20.3 billion in January, up from $18.8 billion in the previous month.