Canada’s trade deficit in August widened to $6.32 billion as exports decreased more than imports both in value and volume, according to official government data reported on Tuesday. The drop in exports was not only to the U.S., Canada’s top trading partner, but also to the rest of the world.
Trade numbers for Canada were impacted earlier this year by sectoral tariffs imposed by U.S. President Donald Trump, leading to disruptions in supply chains. Analysts had predicted a trade deficit of $5.55 billion for August, higher than the $3.82 billion reported in the previous month.
Statistics Canada revealed that total exports declined by three percent, while imports rose by 0.9 percent. Exports to the U.S. in August were at $44.18 billion, down 3.4 percent from the previous month, driven mainly by decreases in unwrought gold exports, as well as lumber, machinery, and equipment.
The share of Canada’s exports to the U.S. has been fluctuating but has shown a gradual decline, dropping to 73 percent in August from 75 percent the previous year. Prime Minister Mark Carney is scheduled to meet with President Trump to discuss the impacts of tariffs on critical sectors like steel, cars, and lumber.
Imports from the U.S. decreased by 1.4 percent in August, resulting in a smaller total trade surplus of $6.43 billion compared to July. Exports to countries other than the U.S. also decreased by two percent, with lower exports of crude oil and nuclear fuel being major contributors to the decline.
On the other hand, imports from countries outside the U.S. surged by 4.2 percent in August, setting a new record high. This increase in imports led to Canada’s trade deficit with countries other than the U.S. reaching a record $12.8 billion in August.