Canada’s trade surplus surged in August, driven by increased exports to the United States ahead of new tariffs taking effect late in the month, the Statistics Canada said Tuesday.
The surplus, Canada’s sixth in as many months, rose from $787 million in July to $4.2 billion in August.
The jump was mainly due to a sharp rise in exports to the United States, which increased by 8.1 per cent in August.
That increase pushed Canada’s trade surplus with the U.S. to $11.2 billion that month, almost double the July figure.
“This is the largest positive monthly change ever observed in Canada’s trade balance with the United States,” Statistics Canada said in a statement.
U.S. President Donald Trump’s announcement in July of new tariffs, which took effect on Aug. 22 after Prime Minister Mark Carney broke off trade negotiations, encouraged exporters to accelerate shipments to the United States.
Exports to countries other than the U.S., however, fell by 8.5 per cent in August following an increase of 8.2 per cent in July, according to Statistics Canada.
“The trade outlook remains clouded,” said TD Bank economist Marc Ercolao. “Recent trade measures mark a further escalation in bilateral frictions, while a major negotiating breakthrough before year-end appears unlikely.”
Ottawa retaliated against the U.S. tariffs by imposing its own tariffs in early September that matched the U.S. measures.
For now, there are no plans to resume trade negotiations between Ottawa and Washington.
“Canada’s trade position is likely to deteriorate and exports will remain under pressure in Q4 unless a trade deal with the U.S. is reached,” said CIBC economist Katherine Judge.
