By Promit Mukherjee
OTTAWA, Oct 6 (Reuters) – Canada’s trade surplus widened substantially in August to C$4.2 billion ($2.94 billion), data showed on Tuesday, as exporters rushed to increase shipments to the United States before President Donald Trump’s new tariffs took effect.
Analysts polled by Reuters had forecast the trade surplus to expand to C$1.55 billion, from an upwardly revised C$787 million.
As exporters shipped more to the US to beat the looming new 50% tariffs from Trump, Canada’s exports to the US surged 8.1% in August, while imports were down 2.5%.
This helped Canada post its 19-month high trade surplus with the US at C$11.2 billion, lifting its share of exports to its biggest trading partner to almost 70%, first time since September 2025.
Trump’s new tariffs covers roughly $20 billion of Canadian exports to the US and came into effect on August 22.
Economists have said that September would show a more accurate impact of the new tariffs which cover a variety of products including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment.
September will also show the impact of Canadian counter tariffs on US imports and Trump’s ban on some goods imports from Canada.
Canada’s overall exports increased by 2.5% in August to C$77.91 billion, after falling by 2.6% in the prior month. Exports of energy products – refined petroleum products and crude oil – posted the biggest overall gain and increased by 4.7% to C$19.03 billion.
A stronger Canadian dollar also impacted the value of exports.
Excluding energy products, exports were up 1.8%. In volume terms, total exports rose 2.5%, StatsCan said.
Exports of consumer goods were up 6.6%, industrial machinery, equipment and parts were up 10.1% and electronic and electrical equipment and parts increased 11.0% in August, the statistics agency said.
Imports were down 2% to C$73.71 billion, with imports of motor vehicles and parts posting the largest decline in August.
As Canada negotiated waves of tariffs across some crucial sectors such as steel, aluminum, autos and lumber for almost 18 months, its export dependence on the US shrunk while exports to the rest of the world rose as it sought to diversify its trade partners.
After increasing 8.2% in July, exports to countries other than the US fell 8.5% in August, and imports decreased. Its trade deficit with countries other than the US widened to C$7.0 billion in August from C$5.3 billion in July, StatsCan said.
(Reporting by Promit Mukherjee)