Canada Trade Surplus Jumps to C$4.2 Billion on Front-Loaded US Exports

The Canadian dollar held near an 18-month low around C$1.4274 per U.S. dollar on Tuesday despite Canada's merchandise trade surplus widening sharply to C$4.2 billion in August. The result exceeded consensus estimates of C$1.55 billion and July's C$787 million figure, marking the sixth consecutive monthly surplus. Total exports grew 2.5% month-over-month to C$77.91 billion while imports fell 2.0%, the first drop in seven months. Bilateral trade with the U.S. expanded to an C$11.2 billion surplus as shipments surged 8.1%, though analysts attributed the jump to front-running ahead of new U.S. tariffs.