According to Statistics Canada, in July, Canada's merchandise imports decreased 5.4 percent, while exports were up 0.7 percent. As a result, Canada's merchandise trade deficit with the world narrowed from a revised $4.9 billion in June to $987 million in July.
Total imports decreased 5.4 percent in July, the strongest percentage decline since January 2022. Overall, imports in 9 of 11 product sections decreased in July 2023 and, as was the case in May and June, imports of unwrought gold were central to the monthly movement. In real (or volume) terms, imports were down 4.3 percent.
Following declines of 2.7 percent in May and 3.5 percent in June, total exports were up 0.7 percent in July. Although the impacts of the British Columbia marine port strike were evident in the exports of some products, declines attributable to strike activity were more than offset by increases in products less affected by this event. In real (or volume) terms, exports edged down 0.2 percent.
Imports from countries other than the United States decreased 13.2 percent in July, the sharpest decline since October 2016. Imports from China (-27.2 percent) decreased the most in July 2023, with widespread declines among products imported from that country. Notable decreases were also observed in imports from the United Kingdom (gold) and Germany (passenger cars).
Exports to countries other than the United States were down 2.0 percent in July. Lower exports to Saudi Arabia (other transportation equipment), Japan (various products) and Italy (pharmaceutical products and crude oil) were largely offset by higher exports to China (canola and wheat).
After reaching a record $11.4 billion in June, Canada's merchandise trade deficit with countries other than the United States narrowed to $8.4 billion in July.
Imports from the United States were down 0.6 percent in July, while exports to that country rose 1.5 percent. As a result, Canada's merchandise trade surplus with the United States went from $6.4 billion in June to $7.4 billion in July.