US trade deficit widens 8.5 per cent to $40.3 billion in April as imports outpace exports

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FILE - In this March 1, 2013 file photo, a crane removes a container from a ship at the Port of Baltimore\'s Seagirt Marine Terminal in Baltimore. The government reports on the U.S. trade deficit for April, Tuesday, June 4, 2013. (AP Photo/Patrick Semansky, File)

WASHINGTON – The U.S. trade deficit widened in April, as demand for foreign cars, cellphones and other imported goods outpaced growth in U.S. exports.

The Commerce Department says the trade gap rose 8.5 per cent in April from March to $40.3 billion. Exports increased 1.2 per cent to $187.4 billion, the second-highest level on record. But imports grew an even faster 2.4 per cent to $227.7 billion.

A wider trade gap can restrain growth because it means U.S. consumers and businesses are spending more on foreign goods than U.S. companies are taking in from overseas sales.

The report showed that Europe’s recession is still weighing on U.S. companies. Exports to Europe fell 7.9 per cent. Weaker global growth could hold back U.S. exports and growth this year.

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