US trade deficit up as price of oil rises

This article talks about the US' trade deficit, which is the difference between imports and exports in the US' trade, is at the second highest level this year. This is due to the raise in oil prices and strong demand for Chinese products.

The reason that the US constantly has a high trade deficit may be because of a weak Chinese currency, which would make Chinese goods seem relatively cheaper. Chinese-made goods also have much lower costs compared to US-made goods, due to low labor costs. Also, oil has an inelastic demand, so when the price goes up, the quantity demanded wouldn't change much, therefore the total value of oil imported increases.