Canada's Trade Surplus with the US Expands to Record High

Exports Surge, Imports Decline

Oil, Gold Drive Strongest Surplus Since 2008

Canada's trade surplus with the United States widened for a third consecutive month to a record $9.4 billion in June from $8.8 billion in May. This marks the largest monthly surplus ever recorded since comparable data became available in 1974.

The increase in the trade surplus was primarily driven by a surge in exports. Canada's merchandise exports to the US increased by 5.5% in June, reaching their highest level since October 2018. Key contributors to the export growth included oil and gold, which saw significant price increases during the month.

Meanwhile, imports from the US declined by 1.8% in June, reflecting a slowdown in the Canadian economy and a decline in imports of consumer goods and automotive products.

The widening trade surplus with the US underscores the strength of Canada's export sector and the resilience of its economy amidst global economic uncertainties. It also highlights the growing demand for Canadian products, particularly in the energy and commodity markets.

The continued expansion of the trade surplus is expected to support Canada's economic growth and contribute to the strengthening of its currency. However, it is important to note that the trade surplus is subject to fluctuations in global economic conditions, commodity prices, and exchange rates.