U.S. Trade Deficit Grows to $42.2 Billion in October AP / Paul Sakuma The U.S. trade deficit surged to the widest imbalance in more than three years in January as imports hit an all-time high. (WASHINGTON) - The U.S. trade deficit increased in October because exports fell by a larger margin than imports, a sign that slower global growth could weigh on the U.S. economy. The trade gap with China also hit an all-time high. The Commerce Department says the trade deficit grew 4.8 percent in October from September to $42.2 billion. MORE: Europe's Crisis Measures Are Working...Sort Of Exports dropped 3.6 percent to $180.5 billion. Sales of commercial aircraft, autos and farm products all declined. Imports fell 2.1 percent to $222.8 billion, reflecting fewer shipments of cell phones, autos and machinery. A wider trade deficit acts as a drag on growth. It typically means the U.S. is earning less on overseas sales of American-produced goods while spending more on foreign products.