Canadian exports to the U.S. surged 8.1 per cent in August, just before a new round of 50 per cent U.S. tariffs on Canadian goods hit at the end of the month, according to Statistics Canada.
Some economists say this was largely because of tariff “front-running,” when businesses try to get as much product out the door as possible before tariffs take effect.
The agency released the balance of trade report for August on Tuesday, and Canada’s trade surplus with the U.S. — which happens when an economy exports more than it imports — nearly doubled from $6.1 billion in July to $11.2 billion in August, as imports from the U.S. fell 2.5 per cent.
This also marked the largest positive monthly change in Canada’s trade balance with the U.S. ever documented, Statistics Canada says.
U.S. President Donald Trump threatened Canada with 50 per cent tariffs on hundreds of goods, and focusing on what his administration considered trade irritants, including automotive, alcohol and dairy industries.
Those tariffs took effect on Aug. 22.
Although Canada responded with dollar-for-dollar counter-tariff measures in September, the data released by Statistics Canada Tuesday does not take into account trade data beyond August.
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“The strength in exports in August was tied largely to the front-running of U.S. tariffs that came into effect late in the month,” said senior economist Katherine Judge at CIBC in a statement, adding: “That means that the spike in exports is temporary and will ease in September.”
Statistics Canada also suggested some businesses may have had a sense of urgency in August, saying, “The announcement of tariffs may influence trade patterns and prompt importers to increase shipments before the tariffs take effect in order to avoid additional costs.”
Canada’s total exports to all countries increased 2.5 per cent in August compared to July, while imports fell two per cent. Meanwhile, Canada had a trade surplus with the world for the sixth straight month, and topped $4.2 billion in August, up from $787 million in July.
Energy products as a sector made up more than a quarter of the increase in all exports in August, driven by diesel fuel sales to countries including the U.S., as well as Peru, the U.K. and the Netherlands. The increase in export values for the category, Statistics Canada says, was not only because of demand but also that prices for petroleum based energy products are up more than 50 per cent year-over-year.
Consumer goods exports also increased by 6.6 per cent, with a more than 43 per cent increase in exports of miscellaneous goods and supplies. More specifically, this was driven mainly by shipments of gold and silver coins to the U.S., Statistics Canada says, and adds that many other goods within the category were targeted by new U.S. tariffs.
Statistics Canada also says miscellaneous consumer goods may include personal care items, including hair dryers and electric shavers, toiletries and cosmetics, as well as personal effect items, including jewelry and watches.
Canada also sent about 10 per cent more industrial machinery, equipment and parts to international customers, which was the highest monthly amount since January 2025. That was mainly because of higher exports to the U.S., with customers buying more general-purpose machinery and equipment, as well as heating, cooling and air purification equipment.
New U.S. tariffs introduced in August also targeted imports of Canadian electronic and electrical equipment and parts, and that category saw exports rise 11 per cent in August. Statistics Canada says although some of those U.S. tariffs were removed in September, exports to the U.S. in August “significantly contributed to the increase in the month.”
“We continue to expect the new tariffs imposed by the U.S. administration will have a significant impact on directly targeted sectors.”
Canadian exports to countries other than the U.S. fell 8.5 per cent in August, and after reaching a record high in July. Statistics Canada says that’s mainly because August saw a sharp drop in comparable sales and shipments of unwrought gold to the U.K., energy products to the Netherlands, and aircraft and crude oil to France.
Overall, 30.2 per cent of all Canadian exports were sent to countries other than the U.S. in August, down from 33.9 per cent in July.
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