Canada’s trade surplus in August expanded to $4.2 billion, with exporters rushing to boost shipments to the U.S. prior to the implementation of President Donald Trump’s new tariffs. Analysts had predicted a trade surplus of $1.55 billion, up from the revised $787 million. Canadian exports to the U.S. surged by 8.1%, while imports from the U.S. declined by 2.5%, leading to a trade surplus of $11.2 billion with the U.S., the highest in 19 months. The share of exports to the U.S. reached nearly 70%, a level not seen since September 2025.
The new tariffs on approximately $20 billion of Canadian exports to the U.S. went into effect on August 22. Economists anticipate that September will provide a clearer picture of the impact of the tariffs, which cover various products such as wine, furniture, dairy items, cement, apparel, fishing gear, and hockey equipment. The month will also reveal the repercussions of Canadian retaliatory tariffs on U.S. imports and Trump’s restrictions on certain Canadian goods.
Overall, Canada’s exports rose by 2.5% in August to $77.91 billion, following a 2.6% decline in the previous month. Energy products, including refined petroleum and crude oil, saw the most significant increase, rising by 4.7% to $19.03 billion. Excluding energy products, exports grew by 1.8%, with total exports in volume terms increasing by 2.5%. Consumer goods, industrial machinery, and electronic equipment exports all saw notable gains.
Imports decreased by 2% to $73.71 billion, with motor vehicles and parts experiencing the largest decline in August. Despite facing tariffs in key sectors like steel, aluminum, autos, and lumber for nearly 18 months, Canada has diversified its trade partners, reducing its reliance on the U.S. While exports to countries other than the U.S. fell by 8.5% in August after an 8.2% increase in July, the trade deficit with non-U.S. countries widened to $7 billion from $5.3 billion in July.
Following the release of the trade data, the Canadian dollar strengthened, trading at $1.4250 to the U.S. dollar, or 70.18 U.S. cents.