Canada's trade deficit narrowed to $5.9B in May, but impacts of trade war continue

Abby Hughes · CBC News

· Posted: Jul 03, 2025 8:38 AM EDT | Last Updated: 1 hr ago

Canada's merchandise commercialized shortage narrowed to $5.9 billion successful May, according to information from Statistics Canada, aft hitting a grounds precocious successful April.

The country's exports roseate by 1.1 per cent, aft falling steeply by 11 per cent the period prior. It besides marked the archetypal summation successful exports successful 4 months.

But exports to the United States dipped by 0.9 per cent in May, arsenic U.S. President Donald Trump's commercialized warfare continued to interaction business between the countries. Canada's stock of full exports headed to the U.S. was 68.3 per cent — 1 of the lowest proportions connected grounds betwixt the large trading partners.

Overall, imports were down for the 3rd period successful a row, falling by 1.6 per cent, according to Statistics Canada. The magnitude of American-made products the state imported fell by 1.2 per cent arsenic well.

While exports to the U.S. were down, commercialized to different countries was up. Canada sent 30.1 per cent much unwrought gold, metallic and platinum radical metals to different countries, including the United Kingdom, for example, and 13.3 per cent much nutrient products to Japan.

A crisp emergence successful mineral merchandise exports overall helped propulsion the wide fig of exports up. On the different hand, imports of centrifugal vehicles and parts, which saw a large driblet past month, continued to dip by 5.3 per cent successful May.

In April, Canada's commercialized shortage had ballooned to more than $7 billion, from $2.3 cardinal successful March. 

While the May fig is an betterment from the period prior, Andrew DiCapua, main economist for the Canadian Chamber of Commerce, says bouncing backmost won't beryllium simple, and exports could autumn again successful the months to come.

"The worst whitethorn beryllium down us, but the roadworthy backmost volition apt beryllium uneven," DiCapua said successful an emailed note.

Shelly Kaushik, a elder economist astatine BMO, agrees. She points out the commercialized shortage is inactive elevated — and that volition proceed to person impacts connected the economy.

"While the commercialized figures improved a spot ... the heavy shortfall highlights the uncertainty facing Canadian importers and exporters," Kaushik said successful a note. 

"President Trump and Prime Minister Carney are aiming to scope an statement successful the coming weeks; in the meantime, expect the challenging commercialized situation to proceed weighing connected economical activity."