Canada’s trade surplus in August expanded to $4.2 billion, a significant increase driven by exporters ramping up shipments to the U.S. ahead of President Donald Trump’s impending tariffs, as per recent data. Analysts surveyed by Reuters had predicted a surplus growth to $1.55 billion, up from a revised $787 million.

Canadian exports to the U.S. surged by 8.1% in August, while imports from the U.S. fell by 2.5%, contributing to a trade surplus with the U.S. of $11.2 billion, the highest in 19 months. This boosted Canada’s share of exports to its primary trading partner to nearly 70%, a milestone not seen since September 2025.

Trump’s new tariffs, impacting around $20 billion of Canadian exports to the U.S., were implemented on August 22. Economists anticipate that September will provide a clearer picture of the tariffs’ impact, covering various goods like wine, furniture, dairy products, cement, apparel, fishing gear, and hockey equipment.

In August, Canada’s total exports rose by 2.5% to $77.91 billion after a 2.6% decline the previous month. Energy products, including refined petroleum and crude oil, saw the most significant increase of 4.7% to $19.03 billion, influenced by a stronger Canadian dollar.

Excluding energy products, exports rose by 1.8%, with total exports in volume up by 2.5%, according to StatsCan. Notably, consumer goods exports rose by 6.6%, industrial machinery and equipment by 10.1%, and electronic and electrical equipment by 11% in August.

Imports decreased by 2% to $73.71 billion, with motor vehicles and parts experiencing the most substantial decline. Amid ongoing tariff negotiations in crucial sectors like steel, aluminum, autos, and lumber over the past 18 months, Canada has reduced its export reliance on the U.S. while increasing trade diversification globally.

After a notable 8.2% rise in July, exports to countries other than the U.S. dropped by 8.5% in August, leading to a widened trade deficit of $7 billion with non-U.S. countries. Following the trade data, the Canadian dollar strengthened slightly, trading at $1.4250 to the U.S. dollar or 70.18 U.S. cents.