Canada July trade surplus shrinks, US exports drop

Canada's trade surplus narrowed significantly in July as exports of energy and metal products declined, while imports increased, just weeks before the U.S. implementation of 50% tariffs, according to Statistics Canada. The trade surplus was C$769 million, down from the four-year high of C$4.2 billion in June, with economists predicting a surplus of C$3.57 billion.

The U.S. accounted for 66.35% of Canada's total exports in July, a decrease from 69.39% in June and 72.64% a year ago. However, Canada's dependence on the U.S. for imports has only narrowed to 59%, compared to 62% in 2024. The decrease in exports was primarily driven by metal products and energy products, which together contributed over 40% of total exports and dropped by 4.4% in July.

The overall decrease in total exports in July was partially offset by higher exports of aircraft and other transportation equipment and parts, which surged by 34.9%.

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