The U.S. trade deficit with Canada has rapidly shrunk to US$2.2 billion in April, its lowest level since early 2021. This significant decline is primarily attributed to a 15.7% drop in Canadian exports to the U.S., marking the third consecutive monthly decline, influenced by President Donald Trump's tariffs and falling oil prices. The article highlights that Trump's claims about the deficit have been inaccurate and that, excluding oil, the U.S. typically runs a trade surplus with Canada.
America’s trade deficit with Canada is vanishing
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TL;DR: Key points with love ❤️The U.S. trade deficit with Canada has rapidly shrunk to US$2.2 billion in April, its lowest level since early 2021. This significant decline is primarily attributed to a 15.7% drop in Canadian exports to the U.S., marking the third consecutive monthly decline, influenced by President Donald Trump's tariffs and falling oil prices. The article highlights that Trump's claims about the deficit have been inaccurate and that, excluding oil, the U.S. typically runs a trade surplus with Canada.
Trending- 1 Last year (2024): The annual U.S. trade deficit with Canada was around US$60-billion.
- 2 Start of this year (2025): Canadian exporters rushed to move products into the U.S. ahead of tariffs.
- 3 April (2025): Canadian exports to the U.S. tumbled by 15.7%, leading to the U.S. trade deficit shrinking to US$2.2-billion, its lowest level since early 2021.
- Vanishing U.S. trade deficit with Canada
- Reduced Canadian exports to U.S.
- Potential impact on trade relations between the U.S. and Canada
- Challenges to President Trump's justifications for trade policies
What: The U.S. trade deficit with Canada rapidly shrank to US$2.2 billion in April, reaching its lowest level since early 2021.
When: April (deficit shrank), 'last year' (annual deficit around US$60-billion), 'early 2021' (lowest level since), 'start of this year' (Canadian exporters rushed).
Where: U.S., Canada.
Why: Canadian exports to the U.S. tumbled by 15.7% (third straight monthly decline), influenced by President Donald Trump's tariffs and falling oil prices. The decline in Canadian oil exports, in particular, contributed to narrowing the deficit.
How: Reduced Canadian exports, especially crude petroleum, directly led to the shrinking deficit. This was exacerbated by Trump's tariff policies and global trade war uncertainty affecting oil prices.