Amid an escalating trade dispute with U.S. President Donald Trump's administration, Canada has been seeking to reduce its dependence on its neighbour and largest trading partner.
The U.S. accounted for 66.35% of Canada's total exports in July, down from 69.39% in June and 72.64% a year ago.
However, Canada's import dependence on the U.S. has only narrowed to 59% in the last 12 months compared with 62% in 2024.
The July figures, Canada's fifth consecutive monthly trade surplus, extended a run of relatively resilient Canadian trade despite more than a year and a half of U.S. tariffs.
However, Washington's latest duties, imposed last month, will provide a tougher test for exporters in the coming months.
The decrease in exports in July was primarily led by metal products and energy products, which together contributed more than 40% of total exports.
Their value dropped 4.4% in July, a third consecutive monthly decline after exports of crude oil decreased by 5.5%, with both prices and volumes falling, StatsCan said.
Exports of metal and non-metallic mineral products, which posted an increase of 15.8% in the prior month, also shrank by 8.5% in July.
As a result, Canada's total exports fell to C$76.14 billion, down from C$77.96 billion in June, but excluding metals and energy, exports increased 0.6% in July.
The overall decrease in total exports in July was partially offset by higher exports of aircraft and other transportation equipment and parts, which surged by 34.9%.
Imports rose in July to a value of C$75.37 billion, up from C$73.76 billion, StatsCan said, adding that it was the sixth consecutive monthly increase.
This was led by an 11.4% increase in imports of motor vehicles and parts, mainly from the U.S.
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