The U.S. trade deficit with China hit a new record in August, which is likely to be seized upon by those in Congress who want to punish the Asian nation for its currency policies.

The U.S. deficit in international trade of goods and services with China, which isn't adjusted for seasonal swings, rose to $28.96 billion from $26.96 billion even as the overall trade gap barely budged. Globally, the U.S. trade deficit, which is seasonally adjusted, narrowed to $45.61 billion from a revised $45.63 billion, the Commerce Department said Thursday.

A separate report showed little movement in the U.S. labor market as new claims for unemployment benefits edged down last week but remained at a high level.

The trade deficit with China climbed by 7.4%. Exports to the country were up 2.9% to $8.41 billion, while imports soared to $37.36 billion, a 6.4% jump.

U.S. trade with China has long been a source of frustration for American policy makers, who blame Beijing for a host of unfair practices. In its latest move, the U.S. Senate Tuesday voted in favor of legislation targeting China's currency management, though the bill faces an uphill battle in the House of Representatives. China fiercely opposes the legislation.