According to Statistics Canada, in August, Canada's merchandise exports increased 5.7 percent, while imports rose 3.8 percent. These strong monthly gains followed disruptions in port operations in British Columbia, which affected merchandise trade activity in July.
Canada's merchandise trade balance went from a deficit of $437 million in July to a surplus of $718 million in August, the first trade surplus observed since April. These trade balances are close to the typical bounds for monthly revisions to imports and exports.
Total exports rose 5.7 percent in August, the strongest percentage increase since October 2021. Overall, exports were up in 7 of the 11 product sections, with exports of unwrought gold and crude oil contributing the most to the monthly gain. Excluding gold and crude oil, exports were essentially unchanged in August.
After posting the sharpest decline in 18 months in July (-5.4 percent), total imports increased 3.8 percent in August, offsetting two-thirds of the previous month's decrease. Overall, increases were observed in 9 of the 11 product sections.
Exports to countries other than the United States were up 7.7 percent in August. Exports to Japan (various products), the United Kingdom (gold and crude oil) and the Netherlands (various products) saw the sharpest increases. After falling 12.6 percent in July, imports from countries other than the United States rose 9.8 percent in August. Imports from China (widespread increases throughout imported products) and South Korea (various products) saw the largest gains. Canada's trade deficit with countries other than the United States widened from $8.6 billion in July to $9.7 billion in August.
Exports to the United States increased 5.2 percent in August, boosted by strong energy product prices. Meanwhile, imports from the United States rose 0.6 percent. As a result, Canada's trade surplus with the United States widened from $8.2 billion in July to $10.4 billion in August, the highest surplus observed since June 2022, when Canadian exports to the United States were at a record high.