The US trade deficit soared to a record 725.8 billion dollars in 2005, dwarfing the previous high of 617.6 billion dollars from 2004, the Commerce Department said Friday. Higher energy prices and a growing trade gap with China that topped 200 billion dollars contributed to the record. It was the fourth straight year in which the overall trade deficit widened to a new all-time high. In response, calls are growing in Washington for China to change its currency and trade policies to help narrow the gap. The trade deficit is not expected to shrink this year because the US economy outpaces that of its major trading partners in Europe and Japan's. In December, the trade gap was 65.7 billion dollars, up 1 billion dollars from November. It was the third-highest monthly trade deficit in US history. --SP 20 20 Local Time 17 20 GMT
