Canada’s trade deficit surged in August as exports dropped sharply while imports edged higher.
The merchandise exports fell 3.0 percent in August to $60.6 billion, the first decline since April, while imports rose 0.9 percent to $66.9 billion. As a result, Canada’s monthly trade deficit widened to $6.3 billion, up from $3.8 billion in July. When services are included, the overall trade gap hit $6.0 billion.
The reversal underscores the fragile momentum in the trade sector. Exports remain slightly ahead of last year on a year-to-date basis, up 0.3 percent, but August’s setback highlights the uneven footing.
The steepest declines came from exports of metals and non-metallic mineral products, down 7.6 percent. Unwrought gold shipments alone slid nearly 12 percent, marking a third consecutive month of losses after May’s record highs. Exports of industrial machinery, equipment and parts fell 9.5 percent, with weakness across several subcategories. Shipments of commercial and service industry machinery plunged 26 percent to France, the U.S. and Poland.
Forestry products also saw a sharp pullback, down 10.1 percent. Lumber exports collapsed by more than 25 percent, the lowest since May 2020.
Purchases of unwrought gold, silver and platinum metals jumped more than fourfold, lifting the overall imports of metals by 24 percent.
Consumer goods imports rose 2.3 percent by pharmaceutical products which spiked nearly 25 percent on increased shipments from Europe. By contrast, energy imports fell 12.8 percent, reversing gains from earlier in the summer. Crude oil imports dropped more than 26 percent.