Canada’s trade surplus in August expanded to $4.2 billion, a significant increase, driven by exporters rushing to boost shipments to the U.S. before President Donald Trump’s new tariffs went into effect. Analysts, surveyed by Reuters, had predicted the surplus would rise to $1.55 billion from the revised $787 million.
Statistics Canada reported that Canadian exports to the U.S. surged by 8.1% in August, while imports from the U.S. decreased by 2.5%. This shift resulted in Canada achieving a trade surplus of $11.2 billion with the U.S., reaching a 19-month high and elevating its export share to nearly 70%, the highest since September 2025.
The new tariffs imposed by Trump, affecting around $20 billion of Canadian exports to the U.S., were implemented on August 22. Economists anticipate that September will provide a clearer picture of the impact of these tariffs, which cover various items such as wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment.
In August, Canada’s overall exports grew by 2.5% to $77.91 billion after a 2.6% decline in the previous month. Energy products, including refined petroleum products and crude oil, saw the most significant increase in exports by 4.7% to $19.03 billion, partly influenced by a stronger Canadian dollar.
Excluding energy products, exports rose by 1.8%, with total exports in volume terms increasing by 2.5%, as reported by StatsCan. The agency noted that consumer goods exports rose by 6.6%, industrial machinery, equipment, and parts by 10.1%, and electronic and electrical equipment and parts by 11% in August.
Imports in August decreased by 2% to $73.71 billion, with the largest decline seen in motor vehicles and parts. Over the past 18 months, as Canada navigated through waves of tariffs in key sectors like steel, aluminum, autos, and lumber, its reliance on U.S. exports diminished, while exports to other countries grew, diversifying its trading partners.
Following an 8.2% increase in July, exports to non-U.S. countries dropped by 8.5% in August, leading to a wider trade deficit of $7 billion with countries other than the U.S., compared to $5.3 billion in July, according to StatsCan. The Canadian dollar strengthened post-trade data, trading up 0.05% to $1.4250 against the U.S. dollar, equivalent to 70.18 U.S. cents.