Statistics Canada announced that Canada's merchandise exports dropped 10.8% in April, while imports fell 3.5%. As a result, Canada's merchandise trade deficit with the world widened from $2.3 billion in March to $7.1 billion in April. This was the largest deficit on record.
Total exports dropped to $60.4 billion in April, the lowest level since June 2023. This was a third consecutive monthly decline and the strongest percentage decrease in five years.
After the United States implemented tariffs on Canadian goods in March, additional tariffs were imposed in early April, with a focus on motor vehicles manufactured in Canada. As was the case in March, total exports were down on lower exports to the United States (-15.7%) in April, while exports to countries other than the United States rose 2.9%.
Overall, export decreases were observed in 10 of the 11 product sections; only exports of metal ores and non-metallic minerals saw a modest increase.
As for imports, strong declines were observed in imports of motor vehicles and parts (-17.7%), industrial machinery, equipment and parts (-9.5%), consumer goods (-4.2%) and electronic and electrical equipment and parts (-5.5%). These declines were partly offset by a strong increase in imports of unwrought gold, silver, and platinum group metals; excluding these imports, total imports were down 6.9%.
Amid new tariffs imposed in April, exports to the United States dropped 15.7%, a third consecutive monthly decline. After posting consecutive strong monthly increases, with a peak in January 2025, exports to the United States have since fallen 26.2%. Meanwhile, imports from the United States were down 10.8% in April. As a result, Canada's merchandise trade surplus with the United States narrowed to $3.6 billion, the smallest surplus since December 2020.
Meanwhile, trade with countries other than the United States reached an all-time high. Exports to countries other than the United States rose 2.9% in April. Exports to China (various products), the United Kingdom (unwrought gold), Algeria (iron ore and wheat) and Brazil (potash) increased the most. Meanwhile, imports from countries other than the United States increased 8.3% to a record $29.0 billion in April. Total merchandise trade (exports plus imports) with countries other than the United States stood at $47.3 billion in April, a record high. Canada's trade deficit with countries other than the United States increased from $9.0 billion in March to $10.7 billion in April.