According to Statistics Canada, after a strong decline in imports and exports in June, imports rose 1.2 percent in July, while exports fell 0.9 percent. As a result, Canada's merchandise trade balance with the world went from an essentially balanced position in June (slight deficit of $55 million) to a $1.1 billion deficit in July.
The slight trade deficit in June, which was originally reported as a $136 million surplus, remains within the typical margins for revisions to the trade balance in subsequent months.
Following a 4.0 percent decrease in June, total imports rose 1.2 percent to $50.9 billion in July, with gains in 6 of 11 product sections. In real (or volume) terms, imports were up 2.3 percent.
Following a 13.6 percent drop in June, imports of metal ores and non-metallic minerals were up 12.6 percent in July, largely on the strength of other metal ores and concentrates. Higher imports of bauxite and aluminum oxide—used in aluminum production—contributed the most to the gain in July, as activities at certain aluminum smelters resumed. Gold imports also rose, driven mainly by increased shipments from Japan and Peru.
After a strong decrease of 5.0 percent in June, total exports fell again in July, down 0.9 percent to $49.8 billion. Despite this decline, 6 of 11 product sections recorded increases, and non-energy exports rose 0.5 percent. In real (or volume) terms, exports edged down 0.1 percent.
Following a 6.7 percent decline in June, energy product exports fell by 6.7 percent again in July, as a result of lower crude oil exports (-7.7 percent). As was the case in June, crude oil export prices (-7.4 percent) were behind the decrease in July. Crude oil export volumes, which peaked in June, remained at a high level in July, edging down 0.3 percent.
These declines were partially offset by an 8.5 percent increase in exports of metal and non-metallic mineral products in July. Gold exports contributed the most to the gain, on higher exports of refined gold to the United States and transfers of gold within the banking sector. Exports of unwrought aluminum (+18.2 percent) were also up in July, following a 36.4 percent increase in June, the first full month after the removal of US tariffs on Canadian aluminum.
Exports to the United States fell 1.1 percent in July, while imports from this country were up 1.6 percent. Following a strong surplus in May and June, Canada's trade surplus with the United States narrowed to $4.6 billion in July.
Imports from countries other than the United States rose 0.5 percent to $18.4 billion. Higher imports from Switzerland (pharmaceutical products) and Belgium (parts for armored vehicles and pharmaceutical products) were partially offset by lower imports from China (various products) and the United Kingdom (aircraft parts).
Exports to countries other than the United States edged down 0.3 percent to $12.7 billion. Lower exports to China (metal ores and pork) were partially offset by higher exports to Hong Kong (gold). As a result, Canada's trade deficit with countries other than the United States widened from $5.6 billion in June to $5.7 billion in July.