Canada’s trade flows recovering from spring: Statistics Canada

In June, Canada’s merchandise imports increased 1.4% and exports rose 0.9%, widening the merchandise trade deficit from $5.5 billion in May to $5.9 billion, Statistics Canada said Tuesday.

“Canada’s trade figures came in line with expectations for June. While trade flows have recovered a touch from the spring, normalization is unlikely until the Canada-U.S. relationship stabilizes,” according to a BMO Economics report.

The merchandise import increase was due to a one-time high-value shipment of an industrial machine for an oil project off the coast of Newfoundland. If this purchase were excluded, total imports would be down 1.9%.

Imports of motor vehicles and parts were also up 2.9% in June. Imports of passenger cars and light trucks increased the most (6.9%), primarily from Mexico. This was partially offset by lower imports of motor vehicle engines and motor vehicle parts (-4.8%) amid declining vehicle production in Canada.

The merchandise export increase was driven by farm, fishing and intermediate food products (6.7%) and energy products (3.8%), partially offset by lower exports of metal and non-metallic mineral products (-3.4%). Total exports were up 2.2% in the first half of 2025 compared with the same period last year.

Exports to the United States increased 3.1% in June but were 12.5% lower compared with June 2024. After three consecutive monthly decreases, imports from the U.S. were up 2.6% in June, again driven by the offshore oil project.

Canada’s merchandise trade surplus with the United States widened from $3.6 billion in May to $3.9 billion in June.

Canadian exports to countries other than the U.S. reached a record high in May but fell 4.1% in June, the first decline since February. Still, exports to destinations other than the U.S. were up 14.7% in June 2025. Imports from countries other than the U.S. fell 0.3% in June. Canada’s trade deficit with countries other than the U.S. widened from $9.1 billion in May to $9.8 billion in June.

At the same time, Canada’s monthly international trade in services deficit narrowed from $0.9 billion in May to $0.7 billion in June. Imports of services edged down 0.2% to $18.7 billion, and exports of services rose 1% to $18 billion, Statistics Canada said.

Imports of travel services fell 0.8% to $4.5 billion in June, while imports of transportation services increased 1.1% to $3.2 billion. Imports of commercial services fell 0.3% to $10.8 billion, led by a decrease in financial services.

Exports of commercial services increased 1.2% to $10.8 billion in June, mostly due to an increase in non-financial commercial services. Exports of travel services also increased 1.2%, reaching $5.2 billion.

Altogether, Canada’s overall trade deficit was little changed at $6.5 billion in June, BMO Economics said.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.