Canada’s trade surplus in August expanded to $4.2 billion, a significant increase driven by exporters accelerating shipments to the U.S. ahead of President Donald Trump’s new tariffs. Analysts had predicted a surplus of $1.55 billion. Canadian exports to the U.S. surged by 8.1%, while imports from the U.S. decreased by 2.5%. This boosted Canada’s trade surplus with the U.S. to $11.2 billion, the highest in 19 months, pushing its share of exports to nearly 70%, a level not seen since September 2025.
Trump’s new tariffs, covering about $20 billion of Canadian exports, went into effect on August 22. Economists expect September to provide a clearer picture of the impact of these tariffs, which include various items such as wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment. Additionally, September’s data will reflect Canadian counter-tariffs on U.S. imports and Trump’s restrictions on certain goods imported from Canada.
Canada’s total exports rose by 2.5% in August to $77.91 billion, bouncing back from a 2.6% decline in the previous month. Energy products, including refined petroleum and crude oil, saw the largest increase, up 4.7% to $19.03 billion. Exports excluding energy products also rose by 1.8%. In terms of volume, overall exports increased by 2.5%.
Consumer goods exports rose by 6.6%, while industrial machinery, equipment, and parts increased by 10.1%, and electronic and electrical equipment and parts by 11% in August. Imports, on the other hand, decreased by 2% to $73.71 billion, with motor vehicles and parts experiencing the largest decline.
Amid ongoing tariff negotiations in sectors like steel, aluminum, autos, and lumber for over 18 months, Canada has reduced its reliance on U.S. exports while boosting trade with other countries. After an 8.2% rise in July, exports to non-U.S. countries dropped by 8.5% in August, leading to a wider trade deficit of $7 billion. The Canadian dollar strengthened post-trade data, trading at $1.4250 to the U.S. dollar, or 70.18 U.S. cents.
