Official figures show that the US trade deficit widened by slightly more than expected in December, as the deficit with China last year soared to a record high $295.5 billion.
The monthly trade gap swelled to $48.8 billion as goods imports climbed to the highest level since July 2008, just before the financial crisis caused world trade to plunge, a report from the Commerce Department showed.
Analysts surveyed before the report had expected the December trade deficit at $48 billion, up from a revised estimate of $47.1 billion in November.
US exports grew slightly in December, with records set for petroleum, services and advance technology goods.
For the year, the US trade gap rose 11.6% to $558 billion, the highest since 2008. Exports last year rose 14.5% to a record $2.1 trillion, keeping the US on track to meet President Barack Obama's goal of doubling exports in five years.
Imports grew 13.8% to a record $2.7 trillion, with records set in several categories. Auto imports rose to the highest since 2007 and petroleum the highest since 2008. The average price for imported oil in 2011 was a record high $99.78 per barrel.
The record trade deficit last year with China is certain to reinforce concerns in the US Congress about China's currency and trade practices ahead of a meeting next week between Obama and the Asian giant's expected next leader, Vice President Xi Jinping.
US exports to China jumped 13.1% to $103.9 billion. But that was overwhelmed by a 9.4% increase in imports from China, which pushed the tally to a record $399.3 billion.
Last year, the Democratic-controlled Senate passed legislation to pressure China to raise the value of its currency, but that bill hit a dead end in the Republican-controlled House of Representatives.
Many US politicians believe that China deliberately undervalues its currency to give its companies an unfair price advantage, contributing to the huge bilateral deficit.
