According to Statistics Canada, Canada's exports were down 5.1 percent in June, while imports fell 4.3 percent, both due in part to significant decreases in crude oil, as well as aircraft and other transportation equipment and parts. As a result, Canada's merchandise trade balance remained in a surplus position, settling at $136 million after posting a $556 million surplus in May.
Total exports decreased 5.1 percent in June to $50.3 billion, more than offsetting the strong gain observed in May. There were widespread decreases throughout the product sections, with 10 of 11 sections posting declines. Export prices (-3.6 percent) played an important role in the decrease this month. Year over year, total exports were down 0.9 percent. In June, non-energy exports fell 4.4 percent.
Total imports were down 4.3 percent in June to $50.2 billion, the lowest level since November 2018. Decreases were observed in 9 of 11 sections, while modest increases were observed in the other 2 sections. In real (or volume) terms, imports decreased 3.6 percent. Year over year, total nominal imports were down 2.7 percent in June, the first annual decrease since September 2017.
Following a $5.9 billion surplus in May, the highest since 2008, Canada's trade surplus with the United States narrowed slightly to $5.7 billion in June. Exports to the United States were down 3.9 percent, mainly on lower exports of crude oil, while imports decreased 3.8 percent. When the average exchange rates of May and June are compared, the Canadian dollar gained 1.0 US cent relative to the American dollar.
Exports to countries other than the United States fell 8.4 percent to $12.7 billion in June. Lower exports to Hong Kong (gold) and Saudi Arabia (other transportation equipment) were partially offset by higher exports to the United Kingdom (gold).
Imports from countries other than the United States were down 5.2 percent to $18.2 billion. Lower imports from Germany (cars), Saudi Arabia (crude oil) and Mexico (various products) contributed the most to the widespread decrease. As a result, Canada's trade deficit with countries other than the United States widened from $5.3 billion in May to $5.5 billion in June.