Canada recorded its largest merchandise trade deficit on record in April, reaching $7.1 billion, following a sharp 10.8% fall in overall exports to $60.4 billion, the lowest level since June 2023. This decline was primarily driven by reduced exports of motor vehicles and parts, consumer goods, and energy products, partly due to U.S. tariffs, while imports also fell but at a slower rate.
April's $7.1B merchandise trade deficit was the largest on record
International tradeTariffs
AI Summary
TL;DR: Key points with love ❤️Canada recorded its largest merchandise trade deficit on record in April, reaching $7.1 billion, following a sharp 10.8% fall in overall exports to $60.4 billion, the lowest level since June 2023. This decline was primarily driven by reduced exports of motor vehicles and parts, consumer goods, and energy products, partly due to U.S. tariffs, while imports also fell but at a slower rate.
Trending- 1 December 2020: Smallest trade surplus with U.S. since this date
- 2 June 2023: Exports at lowest level since this date
- 3 March (prior month): Trade deficit of $2.3 billion
- 4 April: Record merchandise trade deficit of $7.1 billion
- 5 Thursday: Statistics Canada announced the April figures
- Economic implications for Canada
- Potential impact on industries reliant on exports
- Ongoing trade tensions with the U.S.
What: Canada posted its largest merchandise trade deficit on record.
When: April (deficit occurred), Thursday (Statistics Canada announcement).
Where: Canada, with trade partners including the U.S. and other countries.
Why: Overall exports fell sharply (10.8%) due to decreased exports of motor vehicles and parts, consumer goods, and energy products, partly influenced by U.S. tariffs. Imports also fell but at a slower rate.
How: Exports fell to $60.4 billion (lowest since June 2023), while imports fell to $67.6 billion. The trade surplus with the U.S. shrank, and the deficit with other countries widened.