In July, Canada saw its imports of goods fall by 1.7%, while its exports fell by 0.4%. As a result of these changes, Canada’s merchandise trade balance shifted from a revised deficit of $179 million in June to a surplus of $684 million in July. This change reflects recent tight trade balances, which remain within the usual range of monthly import and export adjustments.
After hitting a record $66.1 billion in June, total imports fell by 1.7% in July to $65.0 billion. This decline was driven by significant declines in six of the 11 product categories, with motor vehicles and parts posting the largest decline. Excluding motor vehicles and parts, imports rose by 0.5% in July. In real terms, or volume terms, total imports fell by 2.0% in July.
Imports of motor vehicles and parts saw a significant decline of 10.8%, contributing significantly to the decline in total imports. Imports of passenger cars and light trucks fell 18.7% in July, after hitting a record high in June. Between January and June 2024, imports of this category increased 26.0%, recovering from production and delivery delays that affected Canadian imports of passenger cars and light trucks in late 2023 and early 2024. The decline in July suggests the recovery period is over. Additional factors such as software outages affecting North American dealerships, flooding in the southern United States, and seasonal closures at U.S. auto manufacturing plants may have also contributed to the decline.
Canada Monthly Import Report: Significant declines in some categories, partially offset by higher imports of metals
Imports of aircraft and other transportation equipment and parts fell 17.2% in July. After two months of strong growth, aircraft imports fell 43.4% to $410 million, similar to the average monthly value this year. Ships, locomotives.
Total Canadian exports fall in July on lower vehicle exports
After a strong 4.7% increase in June, total Canadian exports fell 0.4% in July. Exports fell in six of the 11 product categories, with motor vehicles and parts the main contributor to the decline. Excluding this category, exports increased slightly by 0.3% in July. In real or volume terms, total exports fell 1.5% in the month.
Exports of motor vehicles and parts fell 5.4% in July, the second consecutive monthly decline. Exports of passenger cars and light trucks fell 5.9% in July to $4.4 billion, the lowest level since November 2022. In July 2024, export values for this product group were down 24.8% from the high seen in October 2023, partly due to lower Canadian auto manufacturing output. Exports of motor vehicles and parts (-7.8%) also fell in July 2024 and reached their lowest level since November 2022.
The decline in July 2024 coincided with a slowdown in U.S. production after a surge in recent months, and as with imports of passenger cars and light trucks, other factors may have also contributed. Exports of agricultural, fisheries and intermediate food products fell 3.9% in July. This followed a 5.7% increase in June. Exports of canola (-2,5.6%) and wheat (-1,6.0%) contributed significantly to the decline in July. Canola exports fell 28.6% year-to-date compared to the same period in 2023, partly due to increased canola processing activity in Canada, with canola oil used as an input for the renewable energy industry in North America. Significantly lower prices since the beginning of the year also contributed to the downward trend in canola exports.
Canada saw its imports of goods fall by 1.7%, while its exports fell by 0.4%. As a result of these changes, Canada’s merchandise trade balance shifted
Canada’s trade surplus with the United States widened in July
Canadian exports to the United States increased by a notable 1.9% in July, the fourth consecutive monthly increase. At the same time, imports from the United States fell by 3.3%. As a result of these changes, Canada’s trade surplus with the United States widened from $9.0 billion in June to $11.3 billion in July, the largest surplus since October 2023.
Canada’s trade deficit with other countries widens as exports decline: In July, Canadian exports to countries other than the United States fell sharply by 7.8% after a sharp 14.9% increase in June. Much of the decline was driven by a decline in exports to the United Kingdom, due to lower shipments of raw gold, as well as lower exports to India (crude oil, copper ores, and coal) and Hong Kong (crude oil).
In contrast, imports from countries other than the United States rose by 0.9%. This increase was partly driven by imports from Switzerland (miscellaneous products) and the United Kingdom (motor gasoline). However, this increase was partially offset by lower imports from China (miscellaneous products) and South Korea (passenger cars and light trucks). Canada’s trade deficit with countries other than the United States increased from $9.2 billion in June to $10.6 billion in July.
Revisions to June Goods Exports and Imports Data: Imports in June, originally reported at $66.0 billion in the previous release, were revised to a record low of $66.1 billion in the current reference month’s release. Exports in June, originally reported at $66.6 billion in the previous release, were revised to $65.9 billion in the current reference month’s release.
