04.09.202512:36:31UTC+00Canada Logs Smallest Trade Gap in 4 Months

In July 2025, Canada reported a trade deficit of CAD 4.9 billion, narrowing from a revised deficit of CAD 6.0 billion in June, though slightly exceeding market expectations of CAD 4.75 billion. This represents the smallest trade deficit in four months. Exports increased by 0.9%, reaching a four-month high of CAD 61.9 billion, marking the third consecutive month of growth. This rise was evident in 7 out of the 11 product sections, with notable increases in energy products (up 4.2%) and motor vehicles and parts (up 6.6%). However, exports of metal and non-metallic mineral products declined by 8%. On the import side, there was a decrease of 0.7%, bringing the total to CAD 66.8 billion, largely due to a significant drop in imports of industrial machinery, equipment, and parts, which went down by 18.8%. Exports to the United States rose by 5% in July, bolstered by higher exports of crude oil and passenger cars, while imports from the U.S. fell by 2.2%, marking the fourth decline in five months.