Exports Fall for the First Time in Six Months
Canada’s merchandise exports fell 2.3% to C$76.1 billion in July. This marked the first decline in exports after five consecutive monthly increases.
Exports decreased across 7 of 11 product sections, with metal and non-metallic mineral products and energy products accounting for some of the largest declines.
Exports of metal and non-metallic mineral products fell 8.5%. Lower exports of unwrought gold, silver and platinum group metals contributed to the decline.
Energy-product exports decreased 4.4%, marking the third consecutive monthly decline for the category. Crude-oil exports fell 5.6%, with both prices and volumes contributing to the decrease.
Natural-gas exports also declined, falling 14.0% in July.
Aircraft and Food Exports Provide Some Support
The overall decline in exports was partly offset by stronger shipments of aircraft and other transportation equipment and parts.
Exports in this category increased 34.9%, while aircraft exports alone jumped 80.1%. Statistics Canada noted that several commercial aircraft and business jets were exported to overseas destinations during July.
Farm, fishing and intermediate food products also recorded stronger exports, rising 5.5% to their highest level since March 2023.
Canola exports were particularly strong, increasing 43.2% in July. Higher shipments to China, Pakistan and Japan contributed to the increase. During the first seven months of 2026, canola exports were up 32.2% compared with the same period in 2025.
Imports Continue to Increase
While exports declined, Canadian merchandise imports rose for the sixth consecutive month.
Imports increased 2.2% to C$75.4 billion in July, with increases recorded across 6 of the 11 product sections.
Motor vehicle and parts imports were a major contributor. The category increased 11.4%, reaching a record high.
Passenger cars and light trucks increased 19.8% on a seasonally adjusted basis. Statistics Canada noted that the usual temporary closures at North American automotive assembly plants had a less pronounced effect this year, particularly in the United States.
Imports of metal and non-metallic mineral products also increased 9.3% during the month.
Canada-U.S. Trade Surplus Drops
Trade with the United States weakened significantly in July.
Canadian exports to the United States fell 6.6%, representing the strongest percentage decline since April 2025. Lower exports of crude oil and gold contributed to the decline.
At the same time, imports from the United States increased 1.8%, mainly because of higher imports of passenger cars and light trucks.
As a result, Canada’s merchandise trade surplus with the United States narrowed from C$10.3 billion in June to C$5.9 billion in July.
The July surplus was the lowest Canada recorded with the United States since February 2026.
Non-U.S. Exports Reach Record High
While trade with the United States weakened, Canada's exports to other countries strengthened.
Exports to countries outside the United States increased 7.4% in July, marking the third consecutive monthly increase. They reached a record C$25.6 billion.
Non-U.S. markets accounted for 33.7% of Canada's total exports during the month.
Higher exports to the Netherlands, China and Germany contributed significantly to the increase. Shipments to the Netherlands included iron ores, nuclear fuel and crude oil, while exports to China and Germany also increased across several product categories.
Imports from countries outside the United States increased 2.8%. As a result, Canada's trade deficit with non-U.S. countries narrowed from C$6.1 billion in June to C$5.1 billion in July, the lowest level since January 2021.
Goods and Services Trade Remains in Surplus
Canada's overall trade position remained positive when services were included.
Services exports increased 1.2% to C$21.0 billion in July, while services imports decreased 1.1% to C$20.7 billion.
When goods and services were combined, Canada's exports fell 1.6% to C$97.2 billion. Imports increased 1.5% to C$96.1 billion.
That left Canada with a total trade surplus of C$1.1 billion, down from C$4.0 billion in June.
What the July Trade Data Shows
The July figures highlight a mixed picture for Canada's international trade.
The overall merchandise surplus remained positive, but the sharp decline from June reflected weaker exports, particularly in energy and metal-related products, alongside continued growth in imports.
The data also show a changing geographic pattern. Canada-U.S. trade weakened during the month, while exports to countries outside the United States reached a record level.
The stronger performance in non-U.S. markets provides an important counterpoint to the decline in Canada's trade surplus with its largest trading partner.
Next Trade Data Release
Statistics Canada is scheduled to release Canada's international merchandise trade data for August 2026 on October 6, 2026.
The next release will provide further insight into whether the July decline in exports was temporary or part of a broader change in Canada's trade position.