Canada’s trade surplus widens to more than 4-year high in August, as front-loading ramps up

Transport trucks are seen in Aulac, N.B. (CBC)

Canada's trade surplus widened substantially in August to $4.2 billion, data showed on Tuesday, as exporters rushed to increase shipments to the U.S. before President Donald Trump's new tariffs took effect.

Analysts polled by Reuters had forecast the trade surplus would expand to $1.55 billion, from an upwardly revised $787 million.

As exporters shipped more to ​the U.S. to beat the looming 50 per cent tariffs, Canada's exports stateside surged 8.1 per cent in August, while imports from the U.S. were down 2.5 per cent, Statistics Canada reported.

This change helped Canada post a trade surplus with the ​U.S. of $11.2 billion, a 19-month high, lifting its share of exports to its biggest ⁠trading partner to almost ⁠70 per cent for the first time since September 2025.

Trump's new ‌tariffs, which cover roughly $20 billion of Canadian exports to the U.S., came into effect on Aug. 22.

Economists have said that September would show a more accurate impact of the new tariffs, which apply to a variety of items, including wine, furniture, dairy products, cement, clothing, fishing rods ⁠and hockey equipment.

September will also show the impact of Canadian counter-tariffs on U.S. imports and Trump's ban on some goods imports from Canada.

Canada's overall exports increased by 2.5 per cent in August to $77.91 billion, after falling by 2.6 per cent ‌in the previous month.

Exports of energy products — refined petroleum products and crude oil — posted the biggest overall gain, increasing by 4.7 per cent to $19.03 billion. A stronger Canadian dollar also affected the value of exports.

Consumer goods, machinery exports up

Excluding energy products, exports were up 1.8 per cent. In volume terms, total exports rose 2.5 per cent, StatsCan ​said.

Exports of consumer goods were up 6.6 per cent, industrial machinery, equipment and parts were up 10.1 per cent and electronic and electrical equipment and parts increased 11 per cent ⁠in August, the statistics agency said.

Imports were down two per cent to $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 U.S. had shrunk, while exports to the rest of the world ​rose, as it sought to ⁠diversify its trade partners.

After increasing 8.2 per cent in July, exports to countries other than the U.S. fell 8.5 per cent in August, and imports decreased. Its trade deficit with countries other than the U.S. widened to $7 billion in August from $5.3 billion in July, StatsCan said.

The Canadian dollar strengthened after the trade data, with the currency trading up 0.05 per cent ⁠to $1.4250 to the U.S. dollar, or ‌70.18 U.S. cents.