Canada’s merchandise trade deficit widened to -$6.3 billion in August 2025 (from -$3.8 billion in July) as exports fell -3.0% MoM to $60.6 billion while imports rose +0.9% MoM, reflecting sharp movements in unwrought gold and weaker shipments of industrial and forestry products.

• Exports declined for the first time since April, with 8 of 11 product sections down; in volume terms, exports fell -2.8%. Year-to-date exports remained +0.3% YoY, despite tariff volatility and large swings in metal shipments.

• Metal and non-metallic mineral products plunged -7.6% MoM, led by unwrought gold, silver, and platinum group metals (-11.8%), marking a third straight decline but still +30% YTD YoY after record highs earlier in 2025.

• Industrial machinery, equipment, and parts exports dropped -9.5% MoM after four months of gains, driven by steep declines in commercial and service machinery (-26.1%) and other manufacturing machinery (-16.0%).

• Forestry products and building materials fell -10.1% MoM, with lumber (-25.4%) at its lowest since May 2020 following new U.S. anti-dumping and countervailing duties.

• Imports rose +0.9% MoM (-0.3% real) on a surge in metal and non-metallic mineral products (+24.2%), driven by a more than fourfold jump in unwrought gold imports from South Africa and Switzerland. Excluding this category, imports fell -1.0%.

• Consumer goods imports increased +2.3% MoM, led by pharmaceuticals (+24.6%) from Switzerland and Belgium. Energy product imports fell -12.8%, mainly due to a -26.1% drop in U.S. crude oil shipments.

• Exports to the U.S. fell -3.4% MoM while imports -1.4% MoM, narrowing Canada’s U.S. surplus to $6.4 billion; exports to non-U.S. markets fell -2.0% while imports +4.2% to a record, widening the non-U.S. deficit to C$12.8 billion.

• Including services, total exports fell -2.3% and imports +0.7%, bringing Canada’s overall trade deficit to -$6.0 billion in August.