In June, Canada’s merchandise imports were up 1.4%, while exports increased 0.9%. As a result, Canada’s merchandise trade deficit with the world widened from $5.5 billion in May to $5.9 billion in June, reported Statistics Canada on Tuesday.
Total imports were up 1.4% in June, the first increase in four months. The gain was in large part the result of an increase in imports of industrial machinery, equipment and parts, for which a one-time high-value shipment was reported in June. Excluding this product section, total imports were down 1.9%. Overall, increases were observed in 5 of the 11 product sections. In real (or volume) terms, total imports were up 1.5% in June, explained the federal agency.
“After increasing 2.0% in May, total exports rose 0.9% in June. These two consecutive monthly increases followed the decline in April (-11.3%), the strongest decrease reported in five years, amid the implementation of tariffs on imports of Canadian goods in the United States. However, when comparing the first six months of the year with the same period in 2024, total exports were up 2.2% in 2025, largely because of strong results in the first quarter of the year. In June, 6 of the 11 product sections posted increases. Higher prices contributed to the monthly increase in exports; in real (or volume) terms, total exports were down 0.4% in June,” noted Statistics Canada.
Image: Statistics Canada
Statistics Canada said exports to the United States increased 3.1% in June. However, on a year-over-year basis, exports to the United States were 12.5% lower compared with June 2024. Meanwhile, following three consecutive monthly decreases, imports from the United States were up 2.6% in June 2025. The increase in imports in June was in large part the result of the import of a module for an offshore oil project. Canada’s merchandise trade surplus with the United States widened from $3.6 billion in May to $3.9 billion in June.
After reaching a record high in May, exports to countries other than the United States were down 4.1% in June, representing the first decline since February. When compared with the same month in 2024, exports to destinations other than the United States were up 14.7% in June 2025. Lower exports to the United Kingdom (unwrought gold) and Japan (iron ore) were partially offset by higher exports to China (canola and copper ore). Meanwhile, imports from countries other than the United States edged down 0.3% in June. Canada’s trade deficit with countries other than the United States widened from $9.1 billion in May to $9.8 billion in June, it said.
“Following an increase of 4.2% to reach a record high in the first quarter, total exports declined 12.8% in the second quarter. Compared with the second quarter of 2024, exports were down 5.4% in the second quarter of 2025. Exports of energy products (-19.5%), motor vehicles and parts (-16.6%) and consumer goods (-16.6%) were the largest contributors to the decline in the second quarter,” said Statistics Canada.
“Meanwhile, quarterly imports decreased 3.9% in the second quarter. Lower imports of motor vehicles and parts (-11.9%) and consumer goods (-4.0%) were partially offset by higher imports of metal and non-metallic mineral products (+18.6%).
“Canada’s quarterly merchandise trade deficit went from $388 million in the first quarter to a record $19.0 billion in the second quarter.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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