Canadian exporters leaned harder on markets outside the United States in July, as shipments south of the border fell at their sharpest pace in months and overseas sales climbed to a fresh record.
Exports to the United States dropped 6.6% during the month, the largest decline since April, according to Statistics Canada. Exports to countries other than the US moved in the opposite direction, jumping 7.4% to a record $25.6 billion in what marked a third consecutive monthly gain.
The divergence unfolded against a broader softening in Canada’s trade picture. Total exports fell 2.3% to $76.1 billion, the first monthly decline in six months after five straight increases. In volume terms, exports were down 1.5%.
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The pullback was concentrated in two areas. Exports of metal and non-metallic mineral products slid 8.5%, reversing part of June’s 15.8% surge, as shipments of unwrought gold, silver and platinum group metals fell 13.1% on weaker foreign appetite for Canadian-held gold and lower prices. Energy products declined 4.4%, a third straight monthly drop, led by a 5.6% fall in crude oil exports as both prices and volumes eased.
Not every category weakened. Exports of aircraft and other transportation equipment and parts rose 34.9%, with aircraft alone up 80.1% as commercial planes and business jets headed to overseas destinations. Farm, fishing and intermediate food products climbed 5.5% to their highest level since March 2023, helped by a 43.2% jump in canola exports on stronger shipments to China, Pakistan and Japan.
Imports told a different story, rising 2.2% to $75.4 billion for a sixth consecutive monthly increase. Motor vehicles and parts led the way, up 11.4% to a record high as seasonal summer shutdowns at North American assembly plants proved less disruptive than usual.
The shifting flows left Canada with a merchandise trade surplus of $769 million, a fifth straight monthly surplus but a steep narrowing from $4.2 billion in June.
