Canada's Merchandise Trade Surplus Narrows Much More Than Expected in July on Lower Exports, Higher Imports

08:51 AM EDT, 09/03/2026 (MT Newswires) -- Canada's merchandise trade surplus narrowed sharply to C$769 million in July from C$4.2 billion in June, as exports declined 2.3% on the month while imports rose 2.2% monthly, according to the country's statistical agency on Thursday. July's surplus was much lower than a C$3.18 billion consensus surplus expected in a Bloomberg survey. The decline in exports was broad-based, led by weaker shipments of metal and non-metallic mineral products and energy products, wrote Statistics Canada in a statement. Canada's trade surplus with the United States narrowed to C$5.9 billion in July from C$10.3 billion as exports fell 6.6%, marking the largest monthly decline since April 2025, driven by lower crude oil and gold shipments. Imports from the US rose 1.8% on the month, led by passenger cars and light trucks, added StatsCan. By contrast, exports to countries outside the US rose 7.4% monthly to a record C$25.6 billion, narrowing the trade deficit with those countries to C$5.1 billion, its lowest level since January 2021. Motor vehicle and parts imports also hit a record high, rising 11.4% in July.