The deficit was recorded due to a large drop in exports due to US tariffs. According to Statistics Canada, the deficit was $2.3 billion in March, compared to a significant increase in April. Total exports fell 10.8% during April, and exports fell to $60.4 billion. This is the lowest level since June 2023. Exports of vehicles and their parts fell 17.4%. Exports of food products fell 15.4%, while exports of energy products fell 7.9%. On the other hand, total imports also fell 3.5% to $67.6 billion.

Imports of vehicles and their parts fell 17.7% and imports of industrial machinery and equipment fell 9.5%. Canada recorded a $3.6 billion trade surplus with the United States in April, its largest trading partner and the smallest since December 2020. Canada’s trade deficit with other countries was $10.7 billion in April, up from $9 billion in March. Canada’s exports to countries other than the United States rose 2.9% in April to $18.3 billion, while imports from countries other than the United States rose 8.3% to $29 billion.