Canada, Germany Export Declines to US Continue Amid Tariff Impact

Canada is increasingly diversifying its trade away from the United States amid President Donald Trump's tariffs and trade policies, with exports to the U.S. falling for the fourth straight month and imports also declining. Canada's share of exports destined for the U.S. dropped to 68.3%, the smallest proportion since at least 1997, while exports to other countries hit record highs, led by gold shipments to the UK and crude oil to Singapore. This shift helped narrow Canada's overall trade deficit from $7.6 billion in April to $5.9 billion in May. Despite the tariffs, 91% of Canadian exports to the U.S. remain duty-free under the USMCA, mitigating some impacts. Meanwhile, German car exports to the U.S. have sharply declined due to the 25% tariffs imposed by Trump on European auto imports, with German automakers facing significant financial losses and urging a quick trade agreement with the U.S. to resolve the dispute. Economists warn that the ongoing slowdown in Canada-U.S. trade, especially in integrated sectors like energy and manufacturing, could negatively affect exports in the near future.