Canada Balance of Trade

Canada's trade deficit widened to C$6.3 billion in August of 2025 from the downwardly C$3.8 billion in the previous month and firmly above market expectations of C$5.6 billion to mark the second-widest trade deficit on record. Exports fell by 3% from the previous month to $60.6 billion, the first drop since April to extend the period of volatility since the threat and imposition of tariffs by the US. Exports fell by 7.6% for metal and non-metallic minerals amid an 11.8% plunge in gold, while those of lumber and sawmill sank 25.4%. Tariffs by the US drove exports of US goods to slump by 3.4%. In turn, imports rose by 0.9% to C$66.9 billion amid an over 500% surge in purchases of gold, silver, and platinum group metals, making up for declines earlier in the year due to tariff uncertainty. These were partly offset by a 12.8% drop in energy imports, driving imports from the US to fall by 1.4% and Canada's surplus with the US to drop from C$7.4 billion in July to C$6.4 billion.