Canada’s trade deficit narrows in May as exports rebound slightly
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Canada’s merchandise trade deficit narrowed to $5.9 billion in May, down from a record $7.6 billion in April, as exports rose and imports declined, the Conference Board of Canada said.
Exports increased 1.1 per cent to $60.8 billion, the first gain in four months, led by a 15.1 per cent jump in metal and non-metallic mineral products and a 2.6 per cent rise in consumer goods. The rebound was partly offset by a 5.6 per cent drop in energy exports. In volume terms, exports were up 0.7 per cent.
Meanwhile, imports fell 1.6 per cent to $66.6 billion, driven by steep declines in metals (-16.8 per cent) and motor vehicles and parts (-5.3 per cent). Imports of consumer goods rose 4.3 per cent. Overall import volumes declined 0.6 per cent.
Trade with the U.S. cooled, with exports falling 0.9 per cent and imports down 1.2 per cent. Canada’s trade surplus with its largest trading partner edged up to $3.2 billion.
Despite trade tensions and elevated U.S. tariffs, exports to non-U.S. markets climbed 5.7 per cent to a record high, bolstered by increased shipments of gold to the U.K. and crude oil to Singapore.
Analysts warn the near-term trade outlook remains clouded by ongoing tariff uncertainty, particularly in light of U.S. President Donald Trump’s decision to double tariffs on Canadian steel and aluminum, adding strain to already fragile supply chains and investor confidence.
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