Canada Q2 Trade Deficit Hits Record C$19 Billion

Canada's merchandise trade deficit reached a record C$19 billion in the second quarter of 2025, with June alone recording a shortfall of C$5.86-5.9 billion, according to Statistics Canada. This marks the fifth straight monthly deficit, as quarterly exports fell 12.8% amid global trade tensions and sector-specific U.S. tariffs, though June exports rose 0.9% on higher crude oil prices. Imports in June increased 1.4%, mainly due to a one-time, high-value shipment of industrial equipment for an east-coast oil project. Trade with the U.S. saw modest improvement, with exports to the U.S. up 3.1% and Canada's surplus with its largest trading partner widening, while exports to non-U.S. destinations fell by 4.1%. The persistent trade gap reflects challenges from tariffs and shifting global demand, particularly impacting Canadian exports of energy products, motor vehicles, and consumer goods. Overall, the data underscores continued pressure on Canada's trade balance from external economic forces.