Canada's Trade Deficit Narrows Amid Rising Exports to the U.S.
Canada's trade deficit decreased significantly in July, driven by rising exports of crude oil and passenger cars to the U.S., countering the effects of U.S. tariffs. Despite the overall export increase, export volumes to countries other than the U.S. declined, reflecting broader market challenges.
In July, Canada's trade deficit narrowed significantly as the country boosted exports, particularly in crude oil and passenger cars, to its primary trading partner, the United States, according to Statistics Canada. The trade deficit stood at C$4.94 billion ($3.57 billion), considerably lower than June's C$5.98 billion figure but still higher than last year's reading.
Analysts had projected a trade deficit of C$4.75 billion for July. This marks the sixth straight month of deficits, following the imposition of tariffs by U.S. President Donald Trump. Nonetheless, the trade deficit has been improving since the record C$7.6 billion deficit observed in April, indicating gradual recovery.
While exports to the U.S. rose by 5% in July, boosting Canada's trade surplus with its southern neighbor to C$6.7 billion, exports to other countries continued to decline. With a downturn in the Canadian dollar and expectations of a forthcoming interest rate cut, the country's economy faces ongoing challenges despite the trade improvement.
(With inputs from agencies.)
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