Canada’s merchandise trade shortfall narrowed to $5.9 billion in May, easing from the all-time-high $7.1 billion logged in April. A modest 1.1 percent rebound in exports—the first uptick in four months—helped offset a third straight monthly decline in imports, Statistics Canada reported.
Sales to the United States slipped another 0.9 percent, pushing America’s share of Canadian exports down to 68.3 percent, one of the lowest readings on record. By contrast, the 2024 monthly average was nearly 76 percent. Imports of U.S. goods weakened by 1.2 percent, and overall foreign purchases fell 1.6 percent.
Precious metals: Shipments of unwrought gold, silver and platinum to destinations such as the U.K. surged 30.1 percent, lifting total export values.
Agri-food: Meat exports to Japan climbed 13.3 percent.
Autos: Imports of motor vehicles and parts dropped another 5.3 percent, extending April’s sharp slide.
BMO senior economist Shelly Kaushik called May’s figures “a mild improvement” but warned the deficit remains large enough to drag on second-quarter GDP. She also cautioned that several gains were concentrated in narrow categories—particularly gold—making them unlikely to repeat without broader momentum. “It’s only one month of data,” she told CBC News. “We need a longer run to judge sustainability.”
Despite softer U.S. volumes, Kaushik noted that America remains Canada’s dominant customer. Any new bilateral deal—now being negotiated by President Donald Trump and Prime Minister Mark Carney, with a July 21 target—could quickly reshape future trade flows. One sticking point, Canada’s digital-services tax, was shelved to get talks back on track this week.
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