U.S. trade deficit widened in April

The trade deficit is running at an annual rate of $466.6 billion, up 25 percent over 2009’s $374.9 billion, the smallest trade deficit since 2001. 

The U.S. deficit with China increased 14.3 percent to $19.3 billion, bolstered by sales of computers, household appliances and cell phones, according to the report. Meanwhile, U.S. exports to China dropped 9.4 percent behind decreases in sales of cars and raw cotton.

U.S. relations with China are the focus of congressional hearings this week. 

Earlier Thursday, Treasury Secretary Timothy Geithner said China’s exchange-rate policies are impeding the global recovery and provide them an unfair advantage in global commerce. U.S. officials are pressuring Chinese officials to allow the yuan to strengthen, especially at a time when China faces a risk of inflation in goods and prices, Geithner said on Capitol Hill today.