Canada’s merchandise trade deficit widened slightly to $5.9 billion in June, up from $5.5 billion the month before, Statistics Canada reported today.
Imports rose 1.4% largely due to a one-off, high-value shipment of industrial machinery for an offshore oil project. Excluding that delivery, imports would have declined, the agency said.
Exports increased 0.9% in dollar terms but slipped 0.4% in volume, with weakness in autos and metals weighed on overall performance. Exports of passenger vehicles fell for a third straight month, while unwrought aluminum and steel shipments also declined.
These drops coincided with newly imposed U.S. tariffs on Canadian metals and ongoing automotive production slowdowns.
Merchandise exports and imports
Trade tensions weigh on U.S. and global exports
Canada’s trade surplus with the U.S. grew to $3.9 billion in June, up from $3.6 billion the month before. However, exports to the U.S. remained 12.5% lower than a year earlier, weighed down by American tariffs and weaker shipments of autos and metals.
Exports to non-U.S. destinations fell 4.1%, with lower shipments to the UK and Japan. Second-quarter data showed total exports dropped nearly 13% from the first quarter, marking the sharpest quarterly decline since the pandemic recovery began.
The latest figures come amid escalating trade tensions with the U.S., including a new round of tariffs that took effect August 1. Ottawa has voiced disappointment with the measures and says further negotiations are planned.
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Last modified: August 5, 2025
