Canada’s trade surplus narrowed to C$769 million in July from C$3.9 billion in June as exports fell for the first time in six months, Statistics Canada reported.
Total exports declined 2.3% to C$76.14 billion, reversing five consecutive monthly increases, while imports rose 2.2% to C$75.37 billion. The result undershot market expectations for a C$3.2 billion surplus.
Energy product exports dropped 4.4%, the third straight monthly decline, driven by a 5.5% fall in crude oil shipments as both prices and volumes decreased. Metal and non-metallic mineral product exports also fell 8.5%, partially reversing June’s 15.8% gain. Excluding energy and metals, exports edged up 0.6%.
Transportation equipment exports surged 34.9%, led by a 34.9% jump in aircraft and other transportation equipment and parts. Motor vehicle and parts imports increased 11.4%, primarily sourced from the United States.
Trade with the U.S. softened as the bilateral surplus fell more than 40% to C$5.9 billion. Exports to the U.S. declined 6.6%, while imports rose 1.8%. The U.S. accounted for 66.35% of Canada’s exports in July, down from 69.39% in June and 72.64% a year earlier. Washington’s imposition of 50% tariffs on some Canadian goods the prior month was noted in the report.
Exports to non-U.S. markets increased 7.4%, while imports from those markets rose 2.8%. The non-U.S. trade deficit narrowed to C$5.1 billion from C$6.1 billion in June.
Canada has now recorded five consecutive monthly trade surpluses, though July’s surplus was the smallest in that streak.
