Canada’s trade with its neighbour to the south withered in May in the wake of a punishing tariff war launched by U.S. President Donald Trump, Statistics Canada said Thursday.
However Canada made up part of the shortfall with increased shipments to other nations.
As exports to the United States fell for a fourth consecutive month, shipments to other nations rose to “a record high,” said Statistics Canada.
As a result, Canada’s share of exports destined to the United States fell from a monthly average of 75.9 per cent to 68.3 per cent. Statistics Canada said this was “one of the lowest proportions on record.”
Imports from the United States were also down for a third consecutive month, it said.
As a result, Canada’s trade surplus with the United States widened slightly to $3.2 billion.
Prime Minister Mark Carney’s Liberal government and the Trump administration are in intense negotiations to try to reach a deal that would avert escalating tariffs.
Trump has imposed steep levies on imports of autos as well as steel and aluminum — two metals that Canada has historically shipped in large quantities to the United States. The North American auto sector is also highly integrated.
Carney set a July 21 deadline for a new trade agreement.
Without one, he said he would adjust Canada’s 25 per cent counter tariffs on U.S. steel and aluminum — in response to a recent doubling of U.S. levies on the metals to 50 per cent.
The month of May saw a 1.1 per cent increase in total Canadian exports, led by a jump in gold shipments to the United Kingdom.
Canada also shipped more oil to Singapore, aluminum and pharmaceuticals to Italy, and pork to Japan. This rise was partially offset by lower exports of canola and oil to China.
Total imports, meanwhile, fell 1.6 per cent as inbound shipments of motor vehicles and parts continued to fall.
As a result, Canada’s trade deficit with the world narrowed from a record $7.6 billion in April to $5.9 billion in May.
I would like to say I am more than happy if we can increase trade with other countries who wish to trade fairly with Canada & not put tariffs on what we or other countries produce.