Canada's trade surplus widens substantially in August
EWG•Canada's trade surplus widened to C$4.2 billion in August, above analysts' forecast of C$1.55 billion, as exports rose 2.5% to C$77.91 billion and imports fell 2% to C$73.71 billion. The surplus with the United States reached C$11.2 billion, a 19-month high.
1. Exports and imports
Canada's overall exports rose 2.5% in August to C$77.91 billion, while imports fell 2% to C$73.71 billion. Exports to the United States surged 8.1%, and imports from the country declined 2.5%, producing a C$11.2 billion surplus with its largest trading partner.
2. Energy shipments rise
Energy exports increased 4.7% to C$19.03 billion, the largest overall gain by product category. Refined petroleum exports rose 17.4%, driven by higher diesel shipments to Peru, the United Kingdom, the United States and the Netherlands. Economist Prince Owusu said diesel exports might offset some of the impact of new tariffs in September.
3. Trade beyond the US
Exports to countries other than the United States fell 8.5% in August after rising 8.2% in July. Canada's trade deficit with those countries widened to C$7.0 billion from C$5.3 billion. New US tariffs covering roughly $20 billion of Canadian exports took effect on August 22.
