Canada's Trade Deficit Hits Record High Amid US Tariffs
Canada's trade deficit hit a record C$7.1 billion in April as US tariffs, led by President Trump, reduced demand for exports to the country. Despite an increase in exports to other regions, the loss could not be offset. Total exports fell by 10.8%, the steepest decline in five years.
Canada's trade deficit soared to a record C$7.1 billion in April, according to new data released on Thursday. The figures highlight the impact of US tariffs, spearheaded by President Donald Trump, that have significantly reduced demand for Canadian exports south of the border.
Statistics Canada revealed the sharp decline in exports to the United States, with a 15.7% drop marking the third consecutive monthly decrease. This fall has exacerbated Canada's trade difficulties, despite a rise in exports to other global markets.
The impact of tariffs, coupled with lower crude oil prices and a stronger Canadian dollar, resulted in a 10.8% plunge in total exports—the steepest in nearly two years. The merchandise trade deficit with the United States shrunk to C$3.6 billion, marking its smallest surplus since December 2020.
(With inputs from agencies.)
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