OTTAWA — Canada posted a merchandise trade surplus of $769 million in July as exports fell for the first time in six months, Statistics Canada said Thursday.

The result, which compared with a surplus of $4.2 billion in June, came ahead of new U.S. tariffs in August and the Canadian counter-tariffs that will come into effect next week.

“The July trade figures, while disappointing, are largely a look in the rearview mirror as the trade landscape shifted, again, in the following months,” BMO senior economist Shelly Kaushik wrote in a report.

“The new tariffs likely mean net exports will be a drag on growth in the third quarter. Some stability on the tariff front will go a long way in allowing the economy to resume building momentum.”

Trade tensions ramped up at the end of August after talks between Canada and the U.S. broke down and new American tariffs were imposed on some $28 billion in Canadian goods, ranging from hockey sticks to honey.

Canada has responded with counter-tariffs on nearly $28 billion worth of U.S. products scheduled to begin on Sept. 8, while U.S. President Donald Trump has come back with a fresh threat to increase Canadian automotive tariffs to 50 per cent from 25 per cent in the new year.

Statistics Canada said Thursday the July trade surplus came as total exports fell 2.3 per cent to $76.1 billion for the month as exports fell in seven of the 11 product sections it tracks.

Exports of metal and non-metallic mineral products declined 8.5 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys fell 13.1 per cent.

Meanwhile, exports of energy products also dropped 4.4 per cent as exports of crude oil were down 5.6 per cent amid lower prices and volumes.

Statistics Canada said that excluding the metal and non-metallic mineral products and energy products sections, exports rose 0.6 per cent in July.

On the flip side of the trade equation, overall imports rose 2.2 per cent to $75.4 billion as six of 11 categories moved higher, including an 11.4 per cent increase in imports of motor vehicles.

Regionally, Canada posted a $5.9 billion trade surplus with the U.S. in July compared with a $10.3 billion surplus in June as exports to the U.S. fell 6.6 per cent in July, weighed down by lower crude oil and gold shipments. Imports from the U.S. rose 1.8 per cent.

Canada’s trade deficit with countries other than the U.S. was $5.1 billion in July compared with $6.1 billion in June as exports to countries other than the U.S. rose 7.4 per cent to a record high of $25.6 billion. Imports from countries other than the U.S. gained 2.8 per cent in July.

In volume terms, overall exports fell 1.5 per cent, while overall imports rose 2.2 per cent.

Statistics Canada said monthly service exports rose 1.2 per cent to $21 billion, while imports of services fell 1.1 per cent to $20.7 billion.

When international trade in goods and services are combined, Statistics Canada said the country’s total trade surplus was $1.1 billion in July compared with a surplus of $4 billion in June.

This report by The Canadian Press was first published Sept. 3, 2026.

The Canadian Press