Record crude exports return Canada to a current-account surplus
Canada's current account swung to an 8.8 billion Canadian-dollar surplus as record crude exports lifted goods trade. Across the border, the US goods deficit widened to 118.8 billion US dollars in July as imports rose and exports fell. Ottawa also removed seafood from a counter-tariff list one day after announcing it, showing trade policy and realised goods flows moving on different clocks.
Economics & Markets··Night
Oil exports turn the quarterly balance
Canada's current account moved from an 8.3 billion Canadian-dollar deficit in the first quarter to an 8.8 billion Canadian-dollar surplus in the second. It was the first surplus since the second quarter of 2022 and the largest since the fourth quarter of 2005. The goods balance swung from a 6.4 billion Canadian-dollar deficit to a 12.2 billion Canadian-dollar surplus as energy exports rose 27.4 per cent to a record 60.6 billion Canadian dollars. Crude oil and bitumen exports also set a record at 44.8 billion Canadian dollars. Statistics Canada linked the price gain partly to production and supply uncertainty surrounding the conflict in Iran. The figures are seasonally adjusted.[1]
The US goods gap moves the other way
The US goods trade deficit increased 17.4 billion US dollars from June's 101.4 billion US dollars to 118.8 billion US dollars in July. Exports fell 6.0 billion US dollars to 199.4 billion US dollars while imports rose 11.4 billion US dollars to 318.2 billion US dollars. The Census Bureau's advance estimate covers goods rather than services. The same release estimated that wholesale inventories rose 1.3 per cent from June to 959.1 billion US dollars, while retail inventories increased 0.7 per cent to 838.5 billion US dollars. The inventory figures are not adjusted for price changes.[2]
Ottawa narrows its retaliation list
Finance Canada removed seafood and fish products from its counter-tariff list one day after announcing it. CBC News reported that the ministry based the change on feedback from Canadian industries. Ottawa added copper wire and charcoal to preserve the total value of its countermeasures against US products. The initial package announced on Tuesday raised duties on American steel and aluminium goods from 25 per cent to 50 per cent and had imposed a 25 per cent rate on many seafood products. The quick revision showed that the goods carrying the retaliatory burden can change even while the government keeps the overall value of the response intact.[3]
