Canada’s merchandise trade surplus shrank to $769 million in July as exports to the United States fell sharply and imports climbed to a record.
The surplus was down from $4.2 billion in June and was the smallest in five months. Total exports declined 2.3% to $76.1 billion, while imports rose 2.2% to $75.4 billion.
Trade with the United States drove much of the change. Canadian exports to its largest market fell 6.6%, the steepest monthly decline since April 2025. Lower shipments of crude oil and gold accounted for much of the decrease.
Imports from the United States rose 1.8%. The merchandise trade surplus narrowed to $5.9 billion from $10.3 billion in June, its lowest level since February.
Non-U.S. destinations received 33.7% of Canadian merchandise exports in July. Canada’s trade deficit with those countries narrowed to $5.1 billion from $6.1 billion.
Exports of metal and non-metallic mineral products dropped 8.5% following a sharp increase in June. Foreign demand for Canadian-held gold weakened.
Energy exports declined 4.4%, their third straight monthly decrease. Crude oil exports fell 5.6% as both prices and volumes weakened, while natural gas exports dropped 14%.
Aircraft provided one of the month’s strongest gains. Exports of aircraft and other transportation equipment and parts rose 80.1%, reflecting deliveries of commercial aircraft and business jets to overseas customers.
Farm, fishing and intermediate food product exports increased 5.5%. Canola exports jumped 43.2% on higher shipments to China, Pakistan and Japan.
Imports of motor vehicles and parts climbed 11.4% to a record. Passenger car and light-truck imports rose 19.8%, adding to the broader increase in goods entering Canada.
Including both goods and services, Canada posted a trade surplus of $1.1 billion in July, down from $4 billion in June.