Statistics Canada announced that Canada's merchandise exports decreased 2.3% in July, while imports were up 2.2%. As a result, Canada's merchandise trade surplus with the world narrowed from $4.2 billion in June to $769 million in July. This was the fifth consecutive monthly trade surplus.

The Federal Agency notes that export decreases were observed in 7 of the 11 product sections, with exports of metal and non-metallic mineral products and exports of energy products posting the largest declines. As for imports, increases were observed in 6 of the 11 product sections.

Exports to the United States fell 6.6% in July, which was the strongest percentage decrease since April 2025. Lower exports of crude oil and gold were behind the decline in the month. Meanwhile, imports from the United States increased 1.8%, mainly because of higher imports of passenger cars and light trucks. As a result, Canada's trade surplus with the United States narrowed from $10.3 billion in June to $5.9 billion in July, the lowest surplus since February 2026.

Exports to countries other than the United States rose 7.4% in July, a third consecutive monthly increase, to reach a record high of $25.6 billion. Higher exports to the Netherlands (iron ores, nuclear fuel and crude oil), China (various products) and Germany (copper ores) contributed the most to the increase. The share of Canadian exports destined to countries other than the United States was 33.7% in July.

Meanwhile, imports from countries other than the United States increased 2.8% in July. Higher imports from China (various products) were partially offset by lower imports from Germany (aircraft and passenger cars).

Canada's trade deficit with countries other than the United States narrowed from $6.1 billion in June to $5.1 billion in July. This was the lowest deficit observed since January 2021.

 

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