The US trade deficit widened much more than expected in July to a record $68 billion dollars.
The move came as record oil prices pushed America's monthly oil import bill to an all time high.
The trade gap widened 5 per cent from June for the biggest month-to-month increase in nearly a year, the Commerce Department said.
Wall Street analysts surveyed before the report had expected higher oil prices in July to widen the trade gap to $65.5 billion.
The US petroleum trade deficit hit its second highest level on record, as tensions over Iran's nuclear programme, and strong demand in the United States and developing countries such as China pushed oil future prices in July to more than $78 per barrel.
Oil prices have fallen more than 15 per cent since the peak in July. The Organization of Petroleum Exporting Countries agreed yesterday to keep pumping at the high level of 28 million barrels per day but left the door open to production cuts later this year.
US imports from Opec were a record $14.0 billion in July, and the US trade gap with the international oil cartel was a record $10.9 billion.
The volume of US crude oil imports declined in July to about 10.4 million barrels per day, from 11.0 million in June. However, the value of the oil imports hit a record $20.8 billion during the month.
July imports of industrial goods and materials, capital goods and consumer goods also set records in July, reflecting the strength of the US economy.