Canada’s national statistics agency says trade surplus surged in August, driven by increased exports to the United States ahead of new tariffs taking effect late in the month.
The surplus, Canada’s sixth in as many months, rose from CAN$787 million (491 million euros) in July to CAN$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 percent in August.
That increase pushed Canada’s trade surplus with the US to $CAN11.2 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.
US President Donald Trump’s announcement in July of new tariffs, which took effect on August 22 after Canadian Prime Minister Mark Carney broke off trade negotiations, encouraged exporters to accelerate shipments to the United States.
Exports to countries other than the US, however, fell by 8.5 percent in August following an increase of 8.2 percent 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 US tariffs by imposing its own tariffs in early September that matched the US 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 US is reached,” said CIBC economist Katherine Judge.