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Exports on Canadian steel and aluminum drop following U.S. tariffs
Canadian total exports reach a record high in June, but exports of steel and aluminum products saw a decline following the implementation of the United States’ tariffs.
Canada’s merchandise deficit with the world narrowed from $2.7 billion in May to $626 million in June, which is the nation’s smallest deficit since January 2017. Total exports increased 4.1 per cent, mainly encouraged by higher exports of energy products and aircraft.
Exports of energy products increased 7.1 per cent to $9.9 billion, its highest level since October 2014. Aircraft and other transportation equipment and parts also saw a sharp rise in June, going up 18.9 per cent to a record $2.5 billion.
June marks the first time that exports surpassed the $50 billion mark, reaching $50.7 billion.
Amidst the United States’ newly implemented tariffs on Canadian goods, exports to non-US countries rose 8.7 per cent in June to a record $13.6. Higher exports heading to Germany, India, Belgium and Mexico contributed to the rise.
Canadian steel and aluminum products that fell under the new tariffs from the United States fell drastically in June. Exports of Canadian Steel products that were subject to 25 per cent tariffs fell 36.8 per cent. That decrease follows a steady 40 per cent rise from February to May. Aluminum products that are now subject to a 10 per cent tariff also took a hit, going down 7 per cent in June. From February to May, exports of steel rose 28.5 per cent.
On average both steel and aluminum products see a much smaller decline in June, going down an average 0.2 per cent for steel and 2.3 per cent for aluminum.