Though the US has not been able to stem the rising imports
from China, it has shown a remarkable 8.4-per cent decline
of $58.9 billion in October 2006 compared to October
2005, aided by increasing exports, lower oil imports
and a weaker dollar. This is the steepest decline in
its ballooning trade imbalance since December 2001.
weak dollar has helped cut down on import costs by making
US products and services cheaper to foreign importers
while pushing up import costs to Americans.
imports declined 2.7 per cent and exports gained a modest
0.2 per cent, the oil import cost declined by 11.3 per
cent. However, China exported a record $29.3 billion
worth of products to the US in October and the deficit
with China rose 6.4 per cent
during the month to $24.4 billion, putting the annual
deficit on track to beat 2005''s previous record of $202
trade deficit data is the last of the data that will
shape the Federal Reserve''s decision on US interest
rates, due later on Tuesday.