Canada trade surplus hits four-year high at C$4.2 billion

Canada’s trade surplus widened sharply to C$4.2 billion ($2.94 billion) in August, its highest level in more than four years, as exporters accelerated shipments to the United States ahead of new US tariffs.

The surplus was well above the C$1.55 billion forecast by economists polled by Reuters and up from a revised C$787 million in July. According to Statistics Canada, exports rose 2.5 per cent to C$77.91 billion, while imports fell 2 per cent to C$73.71 billion.

Exports to the United States jumped 8.1 per cent in August, while imports from the US fell 2.5 per cent. This pushed Canada’s trade surplus with its largest trading partner to C$11.2 billion, the highest level in 19 months. The US accounted for nearly 70 per cent of Canada’s exports, the highest share since September 2025.

The surge came as Canadian exporters rushed to get shipments across the border before new US tariffs covering about $20 billion of Canadian goods took effect on August 22.

Energy products led the increase in Canadian exports, rising 4.7 per cent to C$19.03 billion, driven by crude oil and refined petroleum products. Exports of consumer goods climbed 6.6 per cent, while industrial machinery, equipment and parts rose 10.1 per cent. Exports of electronic and electrical equipment increased 11 per cent. Excluding energy products, exports still grew 1.8 per cent.

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Economists expect September trade data to provide a clearer picture of the impact of the new US tariffs, as well as Canada’s retaliatory measures.

The tariffs cover a range of products, including wine, furniture, dairy, cement, clothing, fishing rods and hockey equipment.

Meanwhile, Canada’s exports to countries outside the US fell 8.5 per cent in August, following an 8.2 per cent rise in July. The country’s trade deficit with the rest of the world widened to C$7 billion from C$5.3 billion.