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Canada’s current account deficit widened by C$19.8 billion in Q2 2025 to a record C$21.2 billion, driven by a sharp deterioration in the goods trade balance. The goods deficit rose by C$19.1 billion to an unprecedented C$19.6 billion, as exports dropped 13.1% to C$182.2 billion, the lowest since late 2021, pressured by US tariffs and a stronger Canadian dollar. Imports fell 4.0% to C$201.8 billion. In services, the balance shifted to a small surplus of C$0.1 billion, with declines in both exports and imports. Foreign portfolio investors divested C$16.8 billion in Canadian securities, the largest since 2007, while Canadian investors bought C$26.8 billion in foreign assets.