Canada August Goods Trade Deficit Widens to C$6.3B

Canada posted a goods-trade deficit of about C$6.3 billion in August, widening from a revised C$3.82 billion in July and coming in deeper than economist forecasts. Exports fell 3% to roughly C$60.6 billion, driven largely by a sharp drop in unwrought gold shipments and broad pullbacks across multiple sectors, while imports rose 0.9%, with volatile gold flows exaggerating monthly swings. Shipments to the United States fell 3.4%, narrowing Canada’s surplus with its largest trading partner to about C$6.43 billion as exports to other countries also weakened. The figures reflect continued disruption from U.S. sectoral tariffs and mark the seventh consecutive monthly goods deficit, with Bloomberg calling August the second-largest shortfall on record. Market reaction was muted — the loonie was steady and two‑year yields slipped — traders priced about a 60% chance of a Bank of Canada rate cut on Oct. 29, and Ottawa plans to raise the dispute with U.S. President Donald Trump.