In April, Canada’s trade deficit reached 7.1 billion Canadian dollars (4.540 billion euros), more than triple the previous month, as announced by Statistics Canada, which described it as “the largest trade deficit ever recorded in a month.”
Canada’s exports to the United States fell by 26.2% since January, while exports to other countries reached “an all-time high,” notably to China, the United Kingdom, Algeria, and Brazil.
Nonetheless, despite the diversification of exports, it did not offset the decline in business with its main trading partner, as noted by the news agency AFP.
The U.S. administration announced several tariffs on Canadian-origin products to the United States in March, suspending them shortly after while awaiting negotiations, while Canada retaliated with tariffs.
Washington’s decision particularly targeted Canada’s automotive, steel, and aluminum sectors with tariffs ranging from 25% to 50%, which disrupted overall Canadian exports.
“After the imposition of tariffs on foreign automobiles by the United States at the beginning of the month, Canadian manufacturers reduced their production in April, leading to a significant drop in those exports,” explains the statistics department.
Canada’s trade surplus with the United States was thus reduced to 3.6 billion Canadian dollars (2.300 billion euros).
Exports of consumer goods and energy products also significantly declined.
The decline in energy product exports is partially attributed to the falling oil prices and reduced demand amid economic uncertainty stemming from Trump’s protectionist policies, according to AFP.
Overall, exports fell by 10.8% in April, while the 3.5% drop in imports was offset by an increase in gold imports.
