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A drop in unwrought gold exports were a big cause of the growing deficit as the precious metals category saw an 11.8 per cent pullback in exports in August. 

Exports of industrial machinery, equipment and parts also dropped 9.5 per cent in August, the first decline in four months.

Forestry product exports were down 10.1 per cent, including a 25.4 per cent drop in lumber and sawmill products, after higher U.S. tariffs on the industry came into effect.

Consumer goods exports increased three per cent, including a 22.2 per cent surge in pharmaceutical and medicinal products, in a jump that could be related to buyers front-running U.S. pharma tariffs, said BMO senior economist Shelly Kaushik in a note.

But most sectors posted declines, she said.

"Looking through the noise, it’s clear that ºÃÉ«tv trade flows continued to face tariff-related headwinds in August."

Kaushik said that additional sectoral tariffs announced recently, which include lumber, pharmaceuticals, heavy trucks and furniture, point to further challenges in the months ahead. 

But while exports in some categories are still seeing tariff-related declines, TD economist Marc Ercolao said the August pullback was temporary and that net trade is still expected to contribute modestly to third quarter GDP growth after an "exceptionally weak showing" in the second.

"There is still considerable uncertainty on the trade front in the near-term but we believe that the peak negative impacts from tariffs are in the rear-view mirror," he said.

Imports rose 0.9 per cent to $66.9 billion in August, boosted by imports of metal and non-metallic mineral products, including large imports of unwrought gold. Excluding this product section, total imports fell one per cent.

In volume terms, total exports fell 2.8 per cent, while total imports dropped 0.3 per cent.

Looking closer at aluminum exports this year, Statistics Canada said monthly shipments from April to August were down more than 24 per cent compared with the monthly average of 2024. 

The U.S. imposed 25 per cent steel and aluminum tariffs in March and raised the rate to 50 per cent in June. 

This report by ºÃÉ«tvwas first published Oct. 7, 2025.