Canada's trade surplus narrows to $769 million as imports rise sixth month

In July, Canada’s merchandise trade surplus narrowed to C$769 million, down from a revised C$4.2 billion in June. Exports fell 2.3% to about C$76.14 billion while imports rose 2.2%, marking a sixth straight month of higher imports. Energy and metal/mineral exports weighed on the headline figure, with crude oil and other energy shipments declining, though exports outside the U.S. rose 7.4% to a record C$25.6 billion driven by aircraft and agricultural products. The U.S. share of Canadian exports edged below 70%, ahead of looming tariffs, while imports from the U.S. remained a dominant component of total shipments. Analysts caution that July’s volatile figures may temper GDP growth somewhat in Q3, as trade tensions and tariff measures shape the outlook for Canadian exporters. Overall, Canada’s fifth consecutive monthly surplus underscores resilience, but the path ahead remains tightly linked to U.S. trade policy and global energy prices.