April's $7.1B merchandise trade deficit was the largest on record

Canada posted its largest merchandise trade deficit on record in April — at $7.1 billion — as exports fell sharply in the face of U.S. tariffs.

Statistics Canada said Thursday the result for April followed a deficit of $2.3 billion in March.

Overall exports fell 10.8 per cent in April to $60.4 billion, their lowest level since June 2023, as exports of motor vehicles and parts dropped 17.4 per cent.

Exports of consumer goods also fell 15.4 per cent, while exports of energy products dropped 7.9 per cent.

Meanwhile, total imports fell 3.5 per cent in April to $67.6 billion as imports of motor vehicles and parts lost 17.7 per cent and industrial machinery, equipment and parts dropped 9.5 per cent.

In real or volume terms, total exports fell 9.1 per cent in April, while imports fell 2.9 per cent that month.

Canada posted a merchandise trade surplus with the U.S. of $3.6 billion in April, the smallest surplus with the country's largest trading partner since December 2020. The result came as exports to the U.S. fell 15.7 per cent, and imports from the U.S. dropped 10.8 per cent.

Meanwhile, Canada's trade deficit with other countries was $10.7 billion in April compared with $9 billion in March.

Exports to countries other than the U.S. rose 2.9 per cent to $18.3 billion in April, while imports from countries other than the United States gained 8.3 per cent to hit a record $29 billion.