Trump's favorite trade scorecard posts its worst figure since 2006 as the election looms

• The US trade deficit swelled in August by 5.9%, to $67.1 billion, its highest level since 2006, the Commerce Department said Tuesday.
• Economists surveyed by Bloomberg had expected the trade gap to widen to $66.2 billion.
• Shipments of consumer goods led the increase in imports and hit a record high as companies prepared for holiday-season spending.
• President Donald Trump has frequently pointed to the trade deficit as a gauge of his trade policies' success. The growing gap gives him little to brag about heading into the 2020 election.

The US trade deficit swelled to its largest since 2006 in August as holiday-season importing accelerated.

The gap in the trade of goods and services grew by 5.9%, to $67.1 billion, the Commerce Department said Tuesday. Total exports climbed 2.2%, to $171.9 billion. Imports jumped 3.2%, to $239 billion.

Economists surveyed by Bloomberg had expected the deficit to balloon to $66.2 billion.

Outbound shipments of industrial supplies and materials led the overall increase in exports. Imports of consumer goods climbed by $3.8 billion, to a record high, as the US prepared for increased spending during the holiday season.

While indicators have suggested that the US manufacturing sector has enjoyed a steady recovery, the new trade data showed firms increasingly relying on international sources to fulfill domestic demand.

Read more: These 30 global stocks are positioned to stay on top in the 4th quarter as the contrast between a recovering economy and rising COVID cases keeps markets volatile, RBC says

President Donald Trump has frequently pointed to the trade deficit as the key gauge of his trade policies' effectiveness. The gap was slowly closing through 2019 before the coronavirus pandemic slammed the global economy. American firms quickly responded by reducing inventories.

As the economy bounced back, companies increased imports and erased last year's narrowing of the trade deficit. Exporting increased as producers recovered, but the pace has not matched US import activity.

The wider deficit leaves Trump with little to brag about heading into the 2020 election. The trade shortfall was a tenet of the president's 2016 campaign platform and drove Trump to ignite a trade war with China in 2018.

Read more: A 20-year hedge-fund vet shares the 3 stocks he thinks make the perfect play for a booming housing recovery as the US heads for the suburbs

A slew of tariffs on Chinese goods failed to close the trade gap, and several economists have said the aggressive trade policies harmed US workers. Taxes on Chinese imports were frequently passed down to consumers, and retaliatory measures from China weakened US producers' competitiveness.

The World Trade Organization ruled in September that the US's tariffs violated international trade rules, finding that they unfairly targeted China and skirted the WTO's dispute-settlement body. Still, the Trump administration's gutting of the WTO's appellate body effectively allows it to veto the decision and avoid enforcement.

Read more: JPMorgan's $1.9 trillion asset management firm shares the 5 biggest opportunities it's recommending for clients across markets during the fourth quarter