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Canada posted a trade deficit of C$4.9 billion in July 2025, narrowing from a revised C$6.0 billion shortfall in June but slightly above market expectations of C$4.75 billion. It was the smallest trade gap in four months, as exports rose 0.9% to a four-month high of C$61.9 billion, the third consecutive monthly increase. Gains were seen in 7 of the 11 product sections, led by energy products (+4.2%) and motor vehicles and parts (+6.6%); however, metal and non-metallic mineral products slumped 8%. Meanwhile, imports were down 0.7% to C$66.8 billion, mainly reflecting lower imports of industrial machinery, equipment and parts (-18.8%). Exports to the United States increased 5% in July, in part because of higher exports of crude oil and passenger cars. Imports from the United States fell 2.2%, marking the fourth decrease in five months.