Canada’s merchandise trade deficit narrowed to -$4.9 billion in July 2025 (from -$6.0 billion in June), as exports rose +0.9% MoM while imports fell -0.7% MoM.

• Energy exports increased +4.2% MoM, led by crude oil (+2.3%), nuclear fuel (+49.7%), and coal (+28.6%), marking the first gain after five months of declines.

• Motor vehicles and parts exports rose +6.6% MoM, driven by a +10.8% jump in passenger cars and light trucks amid less severe seasonal plant shutdowns.

• Metal and mineral exports fell -8.0% MoM, with unwrought gold (-12.2%) and aluminum (-31.0%) posting sharp declines; aluminum exports hit their lowest since May 2019 under U.S. tariffs.

• Imports dropped -0.7% MoM due to industrial machinery (-18.8%), reflecting the absence of a one-time high-value oil project shipment seen in June; excluding this, imports rose +2.2%.

• Trade with the U.S. showed exports up +5.0% MoM and imports down -2.2%, widening Canada’s surplus with the U.S. to $6.7 billion, the largest since March 2025.