07.10.202512:38:40UTC+00Canada Trade Deficit Widens More than Expected

In August 2025, Canada's trade deficit expanded to C$6.3 billion, up from a revised deficit of C$3.8 billion in the previous month, exceeding market predictions of C$5.6 billion. This represents the second-largest trade deficit recorded in history. The decline in exports, down 3% from the previous month to C$60.6 billion, marks the first drop since April, reflecting ongoing volatility in the wake of U.S. tariffs. Specifically, exports of metal and non-metallic minerals decreased by 7.6%, with a notable 11.8% fall in gold exports. Furthermore, the lumber and sawmill sector experienced a substantial decrease of 25.4%. The imposition of tariffs by the U.S. resulted in a 3.4% decline in exports to the U.S. On the import side, there was a 0.9% rise to C$66.9 billion, primarily driven by a more than 500% increase in the purchase of gold, silver, and platinum group metals, compensating for previous declines earlier in the year attributed to tariff uncertainties. Conversely, energy imports dropped by 12.8%, leading to a 1.4% reduction in imports from the U.S. Consequently, Canada's trade surplus with the U.S. decreased from C$7.4 billion in July to C$6.4 billion.