Statistics Canada announced that Canada’s merchandise imports decreased 1.7% in July, while exports fell 0.4%.
As a result, Canada’s merchandise trade balance with the world moved from a (revised) deficit of $179 million in June to a surplus of $684 million in July.
The Federal agency notes that, following a record $66.1 billion in June, total imports decreased to $65.0 billion in July. Declines were observed in 6 of the 11 product sections, with motor vehicles and parts posting the largest decrease. Excluding motor vehicles and parts, imports increased 0.5% in July.
The 0.4% July drop in total exports comes after a strong increase of 4.7% in June. Overall, 6 of the 11 product sections decreased. Similar to imports, motor vehicles and parts was the largest contributor to the decrease in exports. Excluding motor vehicles and parts, exports increased 0.3% in July.
Exports to the United States increased 1.9% in July, a fourth consecutive monthly increase, while imports from the United States fell 3.3%. As a result, Canada’s trade surplus with the United States widened from $9.0 billion in June to $11.3 billion in July, the largest surplus since October 2023.
After rising 14.9% in June, exports to countries other than the United States fell 7.8% in July and imports from countries other than the United States increased 0.9%. Canada’s trade deficit with countries other than the United States widened from $9.2 billion in June to $10.6 billion in July.