The U.S. trade deficit declined sharply in February as imports from China fell by a record amount and American exports rose for a third straight month.

The Commerce Department says the deficit fell to $43.6 billion in February, 9.6 per cent below January's deficit of $48.2 billion.

Exports rose a tiny 0.2 per cent to $192.9 billion. Imports dropped 1.8 per cent to $236.4 billion as the flow of Chinese goods tumbled by $8.6 billion, led by a big drop in cellphone imports.