Yet overall U.S. gap falls to lowest level since January The U.S. trade deficit with China rose 2.7% in July to a record high $30.9 billion, a reflection of the changing fortunes in the two giant economies. The U.S. economy has revved up since the spring and that’s cause consumers and businesses to by more products from abroad. U.S. imports are up 3.9% compared July 2013, according to Commerce Department data released Thursday. China, on the other hand, has seen its growth slow. The large Asian nation is still an export colossus, however, and it sells far more goods and services to the U.S. than the other way around. The U.S. buys about 3.7 times more stuff China than it buys from the U.S. Through the first seven months of 2014, the U.S. trade deficit with China has totaled $254 billion. The gap during the same period of 2013 was 5% smaller at $241.7 billion. Despite the record trade gap with China, the overall U.S. trade deficit fell in July in a bit of a surprise to Wall Street. The deficit declined by 0.6% to a seasonally adjusted $40.5 billion, marking the lowest level in six months. U.S. exports rose 0.9% to $198 billion in July. Imports advanced 0.7% to $238.6 billion. Economists polled by MarketWatch forecast a deficit of $42 billion. The June trade gap, meanwhile, was revised down to $40.8 billion from $41.5 billion. The smaller-than-expected deficits in July and June offer more evidence that trade was slightly less of a drag on the nation’s growth during the summer than initially reported. A smaller trade deficit is a positive for growth because it means the U.S. is selling more American-made goods and services overseas or buying fewer foreign-made products. In July, imports and exports of autos and parts both hit record highs in July, a reflection of the strong demand for American and foreign-made vehicles.via marketwatch