Statistics Canada announced that Canada's merchandise exports rose 0.9% in July, while imports were down 0.7%. As a result, Canada's merchandise trade deficit with the world narrowed from $6.0 billion in June to $4.9 billion in July.

The Federal Agency notes that June's rise in exports was the third consecutive monthly increase. Since the sharp decline of 11.2% observed in April, merchandise exports have risen 3.0%. Overall, increases were observed in 7 of the 11 product sections in July 2025.

The in imports was driven by lower sales of industrial machinery, equipment and parts, for which a one-time high-value shipment observed in June did not repeat in July. Excluding this product section, total imports were up 2.2%. Despite the overall decline, increases were observed in 10 of the 11 product sections.

Exports to the United States increased 5.0% in July, in part because of higher exports of crude oil and passenger cars. Exports to the United States were down 2.9% in the first seven months of 2025 compared with the same period in 2024. Meanwhile, imports from the United States fell 2.2% in July 2025, a fourth decrease in five months. As a result, Canada's trade surplus with the United States widened from $3.7 billion in June to $6.7 billion in July, the largest surplus since March 2025.

Exports to countries other than the United States were down 8.6% in July, a second consecutive monthly decline. Compared with the same month in 2024, exports to countries other than the United States were up 14.0% in July 2025. Meanwhile, imports from countries other than the United States increased 1.3% in July. Canada's trade deficit with countries other than the United States widened from $9.7 billion in June to $11.7 billion in July.

 

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