Canada's Trade Deficit Widens to $6.3 Billion in August as Exports Drop 3%

08:52 AM EDT, 10/07/2025 (MT Newswires) -- Canada's merchandise trade deficit with the world widened to $6.3 billion in August from $3.8 billion in July as exports fell 3.0% month over month, while imports were up 0.9% month over month, said the country's statistical agency Tuesday.

August's deficit was worse than the $5.70 billion consensus deficit provided by MUFG.

Both movements were influenced by strong variations for unwrought gold in the month, noted Statistics Canada in a statement.

Following three consecutive monthly increases, total exports were down in August. Despite the high volatility in Canadian exports since the beginning of 2025 and the implementation of tariffs by the United States government, total exports for the first eight months of the year were still up slightly (+0.3%) compared with the same period in 2024, added StatsCan.

Following a 1.3% month-over-month decrease in July, total imports rose 0.9% in August. The gain was largely the result of an increase in imports of metal and non-metallic mineral products, for which large imports of unwrought gold were reported in August.

Excluding this product section, total imports were down 1.0%. Overall, decreases were observed in six of 11 product sections.

Canada's trade surplus with the U.S. narrowed from $7.4 billion in July to $6.4 billion in August. Exports to the U.S. decreased 3.4% in August, in part because of lower exports of unwrought gold. Meanwhile, imports from the U.S. fell 1.4% in August.

Canada's trade deficit with countries other than the U.S. set a record, widening from $11.2 billion in July to $12.8 billion in August. Lower exports to Germany (crude oil), Japan (nuclear fuel) and Singapore (crude oil) contributed the most to the monthly decrease, pointed out the Ottawa-based agency.

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