Canada's April trade deficit widens to historic high as tariffs cripple exports

Canada's trade deficit in April widened to an all-time high of a whopping C$7.1 billion ($5.2 billion), data showed on Thursday, as tariffs imposed by President Donald Trump sucked out demand for Canadian goods from the United States.

- 

Canada's exports to the rest of the world rose, but could not compensate for the drop in exports to the US, data from Statistics Canada showed.

Exports to the US shrank by 15.7%, a third consecutive monthly decline, Statscan said, adding that exports south of the border have fallen by over 26% since the peak seen in January.

Analysts polled by Reuters had expected the trade deficit to widen to C$1.5 billion in April.

Statistics Canada also made a big revision to the trade deficit recorded in March to C$2.3 billion from C$506 million.

Canada shipped 76% of its total exports to the US last year and trade between the two countries exceeded a trillion Canadian dollars for a third consecutive year in 2024. But a barrage of tariffs from Trump on Canada and its C$90 billion worth of retaliatory tariffs on US imports have started disrupting cross-border trade.

Total exports in April plunged by 10.8% to C$60.4 billion, the lowest level seen in almost two years, Statscan said, and the strongest percentage decrease in five years.

While exports to the US led the drop, lower crude oil prices and a stronger Canadian dollar also contributed.