FX.co ★ Canada Trade Surplus Much Lower Than Expected

Canada posted a trade surplus of C$770 million in July 2026, down sharply from C$4.2 billion in June. This marked the first slowdown in four months and came in well below market expectations of a C$3.6 billion surplus.

Imports rose 2.2% to C$75.4 billion, led by higher purchases of motor vehicles and parts (11.4%), including passenger cars and light trucks (19.8%). There were also notable increases in imports of non-ferrous metals and non-ferrous metal alloys (49.7%), particularly copper anodes from Chile, as well as higher purchases of gold from U.S. residents in Canada.

Exports fell 2.3% to C$76.1 billion, driven by lower shipments of metal and non-metallic mineral products (-8.5%) and energy products (-4.4%). The energy decline reflected reduced exports of crude oil (-5.6%) and natural gas (-14%). These drops were partly offset by a strong increase in exports of aircraft and other transportation equipment and parts (34.9%).

By destination, exports to the United States declined 6.6%, the steepest drop since April 2025, while exports to the Netherlands, China, and Germany increased.