Monthly trade report: August 2025

ISSN 2819-408X

Highlights

• After 3 consecutive months of growth, Canada’s exports of goods and services decreased 2.3% in August (see column “m/m” in Table 1), as lumber and sawmill product exports reached their lowest levels since May 2020, and exports of unwrought gold, industrial machinery, equipment and parts, and travel services contracted. Excluding the subcategory which includes unwrought gold, Canada’s exports of goods and services decreased 1.7%.
• Meanwhile, Canada’s imports of goods and services increased 0.7% largely due to increased imports of unwrought gold. Excluding the subcategory which includes unwrought gold, goods and services imports actually fell 1.6%. Consumer goods, and commercial services both posted strong growth.
• Goods exports to the United States dropped 3.4% in August as lower exports of gold, machinery, and softwood lumber were observed; meanwhile imports fell 1.4%.
• Goods exports to other markets fell 2.0% due to lower energy exports to Germany, Japan, and Singapore. As for imports from other markets, they grew 4.2% to reach a record high, largely because of higher imports of gold from South Africa and Switzerland, and pharmaceutical products from Switzerland and Belgium.
• Goods export volumes fell 2.8% and import volumes edged down 0.3%. Import prices posted their strongest increase since December 2024, rising 1.2% in August.

Table 1: Canada’s trade performance – August 2025

Figure 1: Canada’s monthly trade performance

Industry view - exports

Goods exports fell 3.0% in August, the first decrease since April. Forestry products dropped the fastest (-10.1%), coinciding with higher United States softwood lumber duties, pushing lumber and other sawmill product exports to fall to their lowest since 2020.

Metal and non-metallic mineral products fell $659.7 million (-7.6%), mainly due to reduced unwrought gold shipments to the United States. Still, exports of unwrought gold, silver, and platinum group metals and their alloys remained 30% higher in the first 8 months of 2025 compared to the same period in 2024. Excluding the subcategory unwrought gold, silver, and platinum group metals and their alloys, goods exports were down 2.2%. Industrial machinery and equipment exports were down 9.5% after 4 months of growth.

Energy products increased $133.7 million (1.0%), driven by crude oil and bitumen (2.7%), and natural gas (8.2%). The increase in exports of natural gas reflected ramp-ups at the new liquefied natural gas facility in Kitimat, British Columbia, which is expected to reach full capacity by spring.

Service exports edged down 0.2% as travel services fell 1.7% (seasonally adjusted) due to lower spending by non-United States visitors. Meanwhile, transportation services fell 1.4%, while commercial services increased 0.8%, led by financial services.

Figure 2: Exports by industry and sector (monthly % change)

Industry view - imports

Overall goods imports increased 0.9% in August, after a 1.3% decrease in July. This overall increase was mainly due to higher imports of unwrought gold, silver, and platinum groups and their alloys, which grew by 351.7% or almost $2.0 billion driven by higher shipments of gold from South Africa and Switzerland . Excluding imports of the subcategory unwrought gold, silver, and platinum group metals and their alloys, goods imports were down 2.0%.

Imports of consumer goods also saw an increase of 2.3%, mainly due to imports of pharmaceutical products (+24.6%) from Switzerland and Belgium. Partially offsetting the overall increase was imports of energy products, which fell 12.8%. This decrease was due to less crude oil imports from the United States.

Total services imports were unchanged in August at $18.4 billion. Imports of commercial services were up 0.8% largely due to financial services. Transportation services fell 1.5% due to less marine transportation of goods and a drop in passenger fares, while travel services were down 0.7%.

Figure 3: Imports by industry and sector (monthly % change)

Global markets

Goods exports to the United States decreased 3.4% from July to August after 3 consecutive monthly increases. This decline was due to lower exports of unwrought gold, various types of machinery, and softwood lumber. Imports from the United States also decreased, falling 1.4%. This resulted in Canada’s goods trade surplus with the United States decreasing from $7.4 billion in July to $6.4 billion in August. Goods exports to the United States were down 3.3% in the first 8 months of 2025 compared to the same period of 2024, while imports are 0.5% lower.

Exports to countries other than the United States were also down, decreasing 2.0% in August, the third consecutive monthly decline. This decrease was due to lower exports of crude oil to Germany and Singapore, and lower exports of nuclear fuel to Japan. On the other hand, imports from countries other than the United States grew 4.2% in August, reaching a record high. This resulted in Canada trade deficit with other countries other than the United States to widen from $11.2 billion in July to $12.8 billion in August, another record.

Figure 4: Goods trade by main markets (monthly % change)

Prices and volumes

Goods export volumes fell 2.8% in August. Export volumes have continued their pattern of volatility this year, alternating between monthly gains and losses. Export prices also edged down 0.2%;  underlying this decline was a very important price decrease of 7.9% for the Western Canada Select, the benchmark for western Canadian crude oil.

Growth in Canadian goods imports was largely price-driven, as import prices rose 1.2% in August—the strongest increase since December of last year. This follows 5 months of weak or negative growth in import prices. The rise in import prices coincided with a 0.8% depreciation of the Canadian dollar against the U.S. dollar in August compared to July, to 72.45 US cents; this was the largest monthly depreciation since January. In volume terms, goods imports slipped 0.3%, the fourth decrease in the past five months.

Figure 5: Goods trade (monthly % change in volume and price indices)

Figure 6: Exchange rate & oil prices

What to watch

• The United States government shutdown has postponed the release of key American third-quarter trade and labour statistics—critical indicators for assessing the impacts of recent United States trade policies. This delay may complicate the Federal Reserve’s decision-making at its upcoming interest rate decision later this month.
• United States manufacturing contracted for a sixth consecutive month in August, according to the Institute for Supply Management, a non-profit supply management research organization. This extends a 2-year general downward trend in the sector. August marked the first month of the implementation of the reciprocal tariffs.
• In response to anticipated weaker demand and a potential supply surplus, OPEC+ announced smaller production increases for November, aiming to stabilize oil prices.
• Chinese industrial output and retail sales both grew less than expected in August and deflation remained an issue with consumer prices 0.4% lower in August than a month ago. At the same time, exports found new markets after sharp declines going to the United States.

Next release: November 4, 2025

Table 2: Trade by industry sector – August 2025

Table 3: Goods trade by main markets – August 2025