FX.co ★ Canada Posts Record Trade Deficit

Canada experienced a significant increase in its merchandise trade deficit, reaching an unprecedented $7.1 billion in April 2025, compared to $2.3 billion in March. This exceeded expectations, which predicted a gap of $1.5 billion. Export figures fell sharply by 10.8%, amounting to CAD 60.4 billion, marking the lowest level seen since June 2023. This decline represents the third consecutive monthly drop and is the steepest percentage decrease in five years. Following the United States’ imposition of tariffs on Canadian products in March, further tariffs were introduced in early April, specifically targeting vehicles produced in Canada. Consequently, sales to the US tumbled by 15.7%, while exports to nations other than the United States increased by 2.9%. Simultaneously, imports decreased by 3.5% to reach CAD 67.6 billion, with substantial drops recorded in 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%). Imports from the United States experienced a decline of 10.8%.