Canada’s merchandise trade surplus narrowed sharply to C$769 million in July from C$3.9 billion in June, Statistics Canada reported on Thursday. The figure fell short of market expectations of about C$3.2 billion and marked the fifth consecutive monthly surplus.
Total exports fell 2.3% to C$76.14 billion, reversing five straight months of gains and the first decline in six months. Energy exports dropped 4.4%, extending a three-month slide, with crude oil shipments down 5.5% due to lower prices and volumes. Exports of metals and non-metallic minerals fell 8.5%, unwinding part of June’s 15.8% gain. Excluding energy and metals, exports rose 0.6%. Aircraft, transportation equipment and parts surged 34.9%.
Exports to the United States declined 6.6% in July, reducing its share of Canadian exports to 66.35% from 69.39% in June and 72.64% a year earlier. Shipments to non-U.S. markets increased 7.4%.
Imports rose 2.2% to C$75.37 billion from C$73.76 billion in June. Motor vehicles and parts imports climbed 11.4%, driven by purchases from the U.S., where imports increased 1.8%. Imports from outside the U.S. advanced 2.8%.
The U.S.-Canada trade surplus fell by more than 40% to C$5.9 billion in July, reflecting the impact of Washington’s 50% tariffs on certain Canadian goods imposed the prior month. Canada’s non-U.S. trade deficit narrowed to C$5.1 billion from C$6.1 billion in June.
