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Canada's merchandise trade deficit widened to a record high of $7.1 billion in April 2025 from $2.3 billion in March, compared to forecasts of a $1.5 billion gap. Exports dropped 10.8% to CAD 60.4 billion, the lowest level since June 2023. This was a third consecutive monthly decline and the strongest percentage decrease in five years. After the United States implemented tariffs on Canadian goods in March, additional tariffs were imposed in early April, with a focus on motor vehicles manufactured in Canada. Sales to the US contracted 15.7% while exports to countries other than the United States rose 2.9%. Meanwhile, imports were down 3.5% to CAD 67.6 billion, with strong declines observed for motor vehicles and parts (-17.7%), industrial machinery, equipment and parts (-9.5%), consumer goods (-4.2%) and electronic and electrical equipment and parts (-5.5%). Imports from the United States were down 10.8%