Canada's merchandise trade deficit widened in August to C$6.32 billion ($4.53 billion), its second highest on record, as exports both to the U.S. and the rest of the world fell, data showed on Tuesday.The August data had been expected
Canada's merchandise trade deficit widened in August to C$6.32 billion ($4.53 billion), its second highest on record, as exports both to the U.S. and the rest of the world fell, data showed on Tuesday.
The August data had been expected to show a more permanent impact of U.S. President Donald Trump's tariffs on Canada, after exports increased earlier in the year to beat the tariffs and then dropped off sharply.
Total exports dropped by 3% in August from July while imports increased 0.9%, Statistics Canada said. It was the first decrease in total exports since April.
In volume terms exports fell 2.8% in August.
"This was not a good report. It was a pretty rough month," said Stuart Bergman, chief economist at Export Development Canada.
"What we are starting to see is the impact of tariffs coming into full view," he said, adding that as the volatility of the fist few months have passed, the more normalized impact on trade was visible.
Analysts polled by Reuters had forecast the August trade deficit at C$5.55 billion, up from a upwardly revised C$3.82 billion in the prior month.
Trump imposed sectoral tariffs on Canada early this year, forcing businesses to reorient supply
Content Original Link:
" target="_blank">
