According to Statistics Canada, in June, Canadian merchandise imports and exports rebounded sharply, mostly on the strength of motor vehicles and parts. Imports rose 21.8 percent and exports were up 17.1 percent. However, compared with February 2020, the month before the pandemic's economic impact was felt in Canada, imports were down 14.3 percent and exports decreased 17.9 percent.
As a result, Canada's merchandise trade deficit with the world widened from $1.3 billion in May to $3.2 billion in June. In real (or volume) terms, imports were up 28.3 percent in June, while real exports increased 10.6 percent. Import prices were down 5.1 percent, while export prices rose 5.9 percent.
Imports from the United States increased 28.0 percent to $26.4 billion in June, partly on imports of motor vehicles and parts. However, imports from the United States were down 19.3 percent compared with February.
Exports to the United States rose 21.8 percent to $27.5 billion in June, mainly on exports of motor vehicles and parts. However, exports to the United States were down 23.9 percent from February. As a result, Canada's trade surplus with the United States narrowed from $1.9 billion in May to $1.1 billion in June.
Following a 13.0 percent decrease in May, imports from countries other than the United States rose 13.0 percent to $16.5 billion in June. Imports from Mexico (motor vehicles and parts), Belgium (parts for other transportation equipment) and Germany (passenger cars and light trucks) contributed the most to the increase. The import levels from countries other than the United States were 5.0 percent lower in June than in February.
Exports to countries other than the United States were up 7.8 percent to $12.2 billion, led by higher exports to the United Kingdom (refined gold). Export levels to countries other than the United States in June were similar to levels in February, but that month's total was below the 2019 average.
As a result, Canada's trade deficit with countries other than the United States widened from $3.3 billion in May to $4.3 billion in June.