Canada’s exports to the neighbouring United States surged in August before new tariffs were imposed by the administration of President Donald Trump.
Consequently, Canada's trade surplus with the U.S. nearly doubled to $11.2 billion in August from $6.1 billion in July. It was the largest monthly increase since 1997.
Canada’s exports to the U.S. rose 8.1% in August while imports declined 2.5%, according to data from Statistics Canada.
Exports to the U.S. from Canada surged ahead of the implementation of U.S. Section 338 duties and tariffs.
Trump announced the new tariffs on Canada July 22, leading to a surge in exports south of the border.
On Aug. 22, Trump imposed a 50% tariff on $20 billion of Canadian exports to the U.S. The new tariffs apply to about 5% of the goods Canada ships to America each year.
Statistics Canada said the new tariffs prompted American businesses to stock up on Canadian supplies to avoid additional costs from the new duties.
The additional U.S. tariffs were applied to Canadian automobiles, dairy products, and alcohol.
Canada’s federal government in Ottawa has since responded with reciprocal tariffs on U.S. imports.
However, Canadian counter-tariffs that were announced at the end of August weren't reflected in the latest trade data as they took effect in September of this year.
Canada's overall trade surplus widened to a four-year high of $4.2 billion in August after narrowing to $787 million in July.
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