Canada recorded an all-time high trade deficit of $7.1 billion in April, significantly wider than expected, primarily due to a sharp 15.7% decline in exports to the United States. This drop is attributed to tariffs imposed by President Donald Trump and Canada's retaliatory tariffs. Total exports fell by 10.8%, the strongest percentage decrease in five years, with motor vehicles and parts seeing the biggest decline. Exports to other countries increased, but could not offset the U.S. decline.
Canada posts April trade deficit of $7.1-billion, the largest on record
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Canada recorded an all-time high trade deficit of $7.1 billion in April, significantly wider than expected, primarily due to a sharp 15.7% decline in exports to the United States. This drop is attributed to tariffs imposed by President Donald Trump and Canada's retaliatory tariffs. Total exports fell by 10.8%, the strongest percentage decrease in five years, with motor vehicles and parts seeing the biggest decline. Exports to other countries increased, but could not offset the U.S. decline.
Trending- 1 January: Exports to the U.S. peaked.
- 2 2024: Trade between Canada and U.S. exceeded a trillion Canadian dollars for the third consecutive year.
- 3 March: Trade deficit recorded at $2.3 billion (revised).
- 4 April: Canada's trade deficit widened to a record $7.1 billion; total exports plunged by 10.8%; exports to U.S. shrank by 15.7%.
- 5 Thursday: Statistics Canada released the data.
- Record trade deficit for Canada
- Significant decline in exports (especially to the U.S.)
- Disruption of trade relations between Canada and the U.S.
- Economic impact on Canadian industries (e.g., automotive)
What: Canada's trade deficit widened to a record $7.1 billion in April, driven by a significant drop in exports to the United States.
When: April (for the deficit data); Thursday (data release); March (previous deficit data); January (peak of exports to U.S.); last year (2024, for trade volume with U.S.); five years (strongest percentage decrease in exports).
Where: Canada, United States.
Why: Tariffs imposed by President Donald Trump on Canada, and Canada's retaliatory tariffs on U.S. imports, which have disrupted trade between the two countries. Lower crude oil prices and a stronger Canadian dollar also contributed.
How: Trade data compiled and released by Statistics Canada.