Canada's trade surplus widened to C$4.2 billion in August, above analysts' C$1.55 billion forecast, as exports rose 2.5% to C$77.91 billion and imports fell 2% to C$73.71 billion.
Canada's trade surplus widened to C$4.2 billion in August from an upwardly revised C$787 million in July. Exports to the United States surged 8.1%, while imports from the US fell 2.5%, bringing Canada's trade surplus with its largest trading partner to a 19-month high of C$11.2 billion.
Overall exports increased 2.5% to C$77.91 billion after falling 2.6% in July. Energy exports rose 4.7% to C$19.03 billion, while exports of industrial machinery, equipment and parts climbed 10.1%, and electronic and electrical equipment and parts rose 11.0%. Imports fell 2% to C$73.71 billion, with motor vehicles and parts recording the largest decline.
The increase in US shipments came before new 50% US tariffs on roughly $20 billion of Canadian exports took effect on August 22. Economists said September data would show more of the tariffs' impact, as well as the effects of Canadian counter-tariffs and a US ban on some Canadian goods. Exports to countries other than the US fell 8.5% in August, and Canada's trade deficit with those countries widened to C$7.0 billion from C$5.3 billion in July.
