The US trade deficit narrowed to a four-month low in July as record food and car exports helped to offset the higher cost of imported crude oil.
Data from the US Commerce Department showed that the trade gap shrank to $59.2bn (Ј29.1bn) in July, down 0.3% from June's revised figure of $59.4bn. ( BBC )
The news comes as China, one of the US's biggest trading partners, posted a near-record trade surplus for August.
China has been accused of keeping its currency undervalued to boost exports.
Too cheap?
US policymakers and politicians have complained that cheap Chinese goods are flooding into the country, putting jobs and local producers at risk.
At the same time, imports are also being boosted by the high price of oil, which climbed to near record levels on Tuesday.
According to the Commerce Department, US imports reached a monthly record of $196.9bn in July, up by 1.8% from June.
Exports increased 2.7% in July to a record $137.7bn, up for a fifth consecutive month and helped by a weak dollar.
America's trade deficit with China grew 12.5% in July to $23.8bn, the highest level since last October, despite a number of safety scares over Chinese-made goods which led to product recalls.