U.S. Trade Deficit Hits $10.4 Billion

America’s monthly trade deficit ballooned to $10.4 billion as imports of toys and Christmas decorations pushed the trade gap with China to an all-time high just before the U.S.-China summit.

The widening deficit in August reported on Tuesday was the worst showing in seven months.

The U.S. appetite for imports from all countries hit a new record in August. On the export side, sales of commercial jetliners, normally a bright spot in the trade picture, fell by $888 million from July.

For August, Chinese shipments to the United States hit a record $5.9 billion, led by a $253 million surge in shipments of toys and Christmas decorations. Half the toys sold in America come from China.

U.S. exports to China slumped to $898 million as sales of commercial airplanes, America’s biggest export to China, suffered a decline.