Canada's Trade Deficit Widens in August Amid Export Struggles
Canada's merchandise trade deficit increased to C$6.32 billion in August, with exports falling significantly more than imports rose. A decrease in exports to both the U.S. and other global markets contributed to this widening gap, while U.S. tariffs continue to disrupt trade balance.
Canada's merchandise trade deficit widened significantly in August, reaching C$6.32 billion, as government statistics revealed a steep drop in exports both in value and volume, outpacing a mild increase in imports.
The deficit marks an increase from previous months, with exports dwindling not only to the U.S., its largest trading partner, but also globally. Analysts attribute this partly to U.S. tariffs imposed earlier this year, prompting a reorientation of supply chains, which remains inconsistent and unpredictable.
Export and import figures highlight a reduction in trade activity, with a notable decrease in exports of unwrought gold, lumber, and machinery. Prime Minister Mark Carney is set to meet with U.S. President Donald Trump to discuss the tariffs impacting critical industries, yet major resolutions are unlikely according to experts.
(With inputs from agencies.)
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