According to Statistics Canada, Canada's merchandise trade deficit with the world totaled $2.8 billion in May, widening from a $1.9 billion deficit in April. Imports rose 1.7 percent, mainly on higher imports of aircraft, while exports edged down 0.1 percent.
Imports rose 1.7 percent in May to $51.1 billion, with 8 of 11 product sections increasing. Imports of aircraft and other transportation equipment as well as energy products contributed the most to the increase in May. Year over year, total imports were up 3.5 percent.
Imports of aircraft and other transportation equipment and parts rose 17.7 percent to $2.4 billion in May, the fifth consecutive monthly increase for this product section. Aircraft drove the advance, more than tripling to $937 million on the import of several airliners from the United States.
Total exports edged down 0.1 percent to $48.3 billion in May, mainly due to lower exports of motor vehicles and parts as well as metal ores and non-metallic minerals. These declines were largely offset by higher exports of aircraft and other transportation equipment and parts, as well as forestry products and building and packaging materials. Year over year, total exports were essentially unchanged.
Exports of motor vehicles and parts fell 3.6 percent to $7.3 billion in May, primarily due to lower exports of passenger cars and light trucks (-4.9 percent). A disruption in the supply of auto parts originating in the United States in May led to lower imports of motor vehicle engines and parts, contributing to the decline in exports of passenger cars and light trucks. Over the first five months of 2018, exports of passenger cars and light trucks were down 14.6 percent compared with the same period in 2017.
Exports of metal ores and non-metallic minerals also fell significantly in May, down 14.6 percent to $1.3 billion, the lowest level since September 2016. Exports of iron ores and concentrates posted the sharpest decline, falling by more than half compared with the previous month. This decline coincided with work stoppages in iron mines in April and May.
These declines were largely offset by higher exports of aircraft and other transportation equipment and parts, which were up 7.8 percent to $2.1 billion in May. Exports of boats and other personal transportation equipment almost quadrupled, mainly on the strength of higher exports of other transportation equipment to Saudi Arabia. Lower exports of aircraft (-15.2 percent) partially offset this gain, mainly on lower exports to France.
Imports from countries other than the United States rose 2.9 percent in May to $18.5 billion. Higher imports from China (aircraft and other communications equipment), Belgium (pharmaceutical and medicinal products) and Germany were offset by lower imports from Mexico, among others.
Exports to countries other than the United States edged up 0.2 percent in May to $12.5 billion. There were notable gains in exports to Saudi Arabia (other transportation equipment) and Hong Kong (unwrought gold). These increases were partially offset by lower exports to France and the Netherlands.
Consequently, Canada's trade deficit with countries other than the United States widened from $5.6 billion in April to $6.1 billion in May.
Imports from the United States rose 1.0 percent in May to $32.6 billion, while exports to the United States fell 0.2 percent to $35.9 billion. As a result, Canada's trade surplus with the United States narrowed from $3.7 billion in April to $3.3 billion in May.