Canada recorded a trade surplus of C$770 million in July of 2026, narrowing sharply from the C$4.2 billion in June, marking the first slowdown in four months and well below market expectations of a C$3.6 billion surplus. Imports rose 2.2% to C$75.4 billion, driven by higher purchases of motor vehicles and parts (11.4%), passanger cars and light trucks (19.8%), non-ferrous metals and non-ferrous metal alloys (49.7%), particularly copper anodes from Chile, and higher purchases of gold from US residents in Canada. Exports declined 2.3% to C$76.1 billion, driven by lower shipments of metal and non-metallic mineral products (-8.5%) and energy products (-4.4%), reflecting a shortfall of crude oil (-5.6%) and natural gas (-14%). The decline was partially offset by higher shipments of aircraft and other transportation equipment and parts (34.9%). Meanwhile, exports to the US fell by 6.6%, the sharpest decline since April 2025, while increasing for the Netherlands, China and Germany.