According to Statistics Canada, Canada's merchandise trade balance with the world posted a $3.6 billion deficit in June, widening from a $1.4 billion deficit in May. Exports fell 4.3 percent to $46.5 billion in June. This sharp decrease was mainly due to lower exports of unwrought gold and energy products. Imports edged up 0.3 percent to $50.1 billion, led by an increase in gold bullion.
Following three consecutive monthly record highs, total exports fell 4.3 percent to $46.5 billion in June, as 9 of 11 sections decreased. Prices were down 2.7 percent, with widespread declines throughout the commodity sections. Export volumes (-1.7 percent) were also down. Exports of metal and non-metallic mineral products decreased 14.9 percent to $5.3 billion in June, following a 12.4 percent increase in May.
Exports of energy products, mostly coal, also fell in June, down 26.5 percent to $497 million. This follows three consecutive monthly increases of coal exports. Overall, prices in the section were down 6.1 percent and volumes decreased 3.3 percent.
Sustained growth in total imports slowed in June, edging up 0.3 percent to $50.1 billion. Volumes rose 0.8 percent while prices fell 0.5 percent. Imports of metal ores and non-metallic minerals rose 39.1 percent to a record high $1.3 billion in June, mostly on higher volumes.
Imports of aircraft and other transportation equipment and parts rose 11.7 percent to a record high $2.3 billion in June. Higher imports of aircraft (+30.4 percent) and ships, locomotives, railway rolling stock, and rapid transit equipment (+71.2 percent) led the gain. The import of new airliners and railcars for the transportation of petroleum from the United States contributed the most to the growth.
Largely offsetting these gains were lower imports of motor vehicles and parts, down 3.2 percent to $9.4 billion, with widespread decreases throughout the section. The overall decrease follows five consecutive monthly increases.
Exports to the United States were down 4.5 percent to $34.5 billion in June, mostly on lower exports of crude oil. Imports from the United States fell 0.7 percent to $32.4 billion, also on lower imports of crude oil. As a result, Canada's trade surplus with the United States narrowed from $3.5 billion in May to $2.2 billion in June, the smallest surplus since June 2016. The Canadian dollar gained 1.7 cents US relative to the American dollar in June.
Exports to countries other than the United States were down 4.0 percent, mainly on lower exports of unwrought gold to the United Kingdom as well as lower exports of coal to Japan. Imports from countries other than the United States were up 2.1 percent, led by Brazil (bauxite) and South Korea (passenger cars). Consequently, Canada's trade deficit with countries other than the United States widened from $4.9 billion in May to $5.8 billion in June.