The numbers: The nation’s trade deficit rose 1.3% in September to a seven-month high as imports set a fresh record, confounding efforts by the Trump White House to bring deficits down.

The deficit edged up to $54 billion from a revised $53.3 billion in August, the Commerce Department said Friday.

Economists polled by MarketWatch had forecast a $53.6 billion gap.

It’s the second biggest monthly trade deficit since Donald Trump became president in January 2017. What’s more, the trade deficit with China set a new record despite U.S. tariffs meant to punish the country for what the U.S. considers unfair trade practices.

The U.S. trade deficit added up to almost $447 billion in the first nine months of 2018. That compared to about $404.5 billion in the same span in 2017.

The U.S. is on track to post its biggest deficit in a decade.

Read: U.S. productivity jumps 2.2%, caps best back-to-back gain in four years

What happened: Imports rose 1.5% to a record $266.6 billion. The U.S. imported more telecommunications gear, computers, clothes and toys, among other things.

Some of the influx of imported goods have been brought into the U.S. ahead of the holiday season.

Meanwhile, exports also increased 1.5% to $212.6 billion. The U.S. shipped more oil, aircraft, autos and drugs.

The impact of U.S. tariffs on foreign steel and billions of dollars in Chinese goods, meanwhile, has had a limited impact so far.

The biggest effect was to spur a surge in soybean exports during the spring as buyers and sellers sought to get ahead of the tariffs. Although soy exports fell in September, they are up sharply compared to a year earlier.

Big picture: The U.S. trade deficit is both good and bad.

A bigger gap reflects the stark reality that the American manufacturing sector is not as dominant globally as it once was. What’s more, higher deficits reduce gross domestic product, the official measuring stick of the economy.

At the same time, though, the strong U.S. economy means Americans can afford to spend more compared to people in other countries. And a higher value for the dollar also makes foreign goods and travel less expensive.

The Trump White House desperately wants to slash the trade deficit, but unless it’s accomplished by U.S. rebuilding its manufacturing base or Americans spending less it won’t do much to help the economy in the long run.

As it stands now, the deficit in 2018 is on track to be the largest in a decade.

Opinion: Trump is right on the threat to trade from China

Market reaction: The Dow Jones Industrial Average DJIA, -0.47% and the S&P 500 SPX, -0.83% rallied on Thursday for the third straight gain, partly recovering from an October slump that pulled prices well below a recent record high. Stocks were also set to open higher on Friday.