Key facts
- Canada's trade surplus for July was C$769 million, down from C$4.2 billion in June.
- Exports decreased by 2.3% in July, driven by lower energy and metal product shipments.
- Imports increased by 2.2% in July, with motor vehicles and parts leading the rise.
- The trade surplus with the United States decreased by more than 40% to C$5.9 billion.
- Exports to non-U.S. countries rose 7.4%, while imports from these countries increased 2.8%.
Canada's trade surplus significantly diminished in July, falling to C$769 million from a four-year high of C$4.2 billion in June, according to data from Statistics Canada. This contraction was driven by a 2.3% decrease in exports, primarily in energy and metal products, while imports rose by 2.2%. The decline in exports was partially offset by a substantial 34.9% surge in aircraft and other transportation equipment.
The trade surplus with the United States, Canada's largest trading partner, shrank by over 40% to C$5.9 billion, as exports to the U.S. fell 6.6% and imports from the U.S. increased 1.8%. This comes just weeks before new U.S. tariffs are set to escalate trade tensions. Despite the July figures, Canada has maintained a trade surplus for five consecutive months, though the upcoming tariffs are expected to present a tougher challenge for exporters.
Exports to countries outside the U.S. saw a notable increase of 7.4%, while imports from these nations grew by 2.8%, resulting in a non-U.S. trade deficit of C$5.1 billion. The data also indicated a gradual decline in Canada's reliance on the U.S. market for exports, with the U.S. share falling to 66.35% in July from 69.39% in June.