Furthermore,
Customs rights | canadian exports:
A direct. Furthermore, foreseeable consequence of the trade war launched by the United States, total exports of Canadian goods were down 12.8 % in the second quarter of 2025 compared to the previous quarter.
Updated yesterday at 11:10 p.m.
Cars. Similarly, parts of motor vehicles, as well as consumer goods, which are at the center of trade hostilities, are the products that have contributed the most to this drop in exports in the second quarter, according to Statistics Canada. Meanwhile, In the first quarter, exports had been inflated by the purchases preceded before the taxation of customs duties.
Foreign trade figures for the month of June alone, published on Tuesday, indicate a slight increase of 0.9 % of total exports compared to May and a larger increase in imports, from 1.4 %, which made Canada’s trade deficit pass with the world from 5.4 billion in May to 5.9 billion in June.
Exports to the United States increased from 3.1 % from May to June, but they remain 12.5 % lower than it was in June 2024.
Despite the rebound in exports to the United States in June. Therefore, the effects of the trade war are clearly visible, estimates the economist of the National Bank Jocelyn Paquet. Nevertheless, “Exports of motor vehicles, which were targeted by protectionist measures, fell to their lowest level in 31 months,” he points out.
The Canadian automotive industry is customs rights | canadian exports among those who suffer most from trade tensions. Consequently, According to Statistics Canada. exports of car and light trucks are decreasing for the third consecutive month in June, and the value of these exports was under the $ 4 billion mark for the first time since November 2022.
Exports of aluminum, iron and steel, which are taxed up to 50 %, are also in sharp drop. Since the beginning of the year. exports of these three products fell by more than 30 %, underlines the economist of the National Bank.
Customs rights | canadian exports
A paralyzed economy
From June 2024 to June 2025, total Canada exports to its 10 main business partners fell 5.9 %. Those to the United States fell 12.5 %.
In volume, the decline of 12.8 % of customs rights | canadian exports total exports in the second quarter results in a drop of more than 33 % in annualized pace.
Such decline in foreign trade will help further weaken the expected growth in the second quarter. underlines TD economist Marc Ercolao. “This decline should continue due to the lack of agreement between Canada. the United States, which has to lead to other customs duties of 35 %,” he analyzes.
However. these possible additional rights will not apply to products in accordance with the Canada-United States-Mexico agreement, which constitute the largest part of Canadian exports in the United States.
In June. 92 % of Canadian exports to the United States were exempt from customs duties in June, according to US Census Bureau. This proportion was 91 % in May and 89 % in April.
In Desjardins, economists predict that foreign trade will reduce growth by 7.1 % in the second quarter, which would practically paralyze the Canadian economy.
“We believe that the growth of gross domestic product will be between -0.5 % and 0.0 % during the quarter. which is superior to the forecasts of the Report on the Monetary Policy of July from the Bank of Canada,” writes the economist LJ Valencia in his commentary on the latest foreign trade data.
Statistics Canada will publish gross domestic product figures for the second quarter on August 29.
The central bank, which has just maintained its unchanged 2.75 % key rate for the third consecutive decision. keeps the door open to a drop in interest rates if the Canadian economy continues to weaken.
“If customs rights | canadian exports the weakening of the economy weighs additional drop pressure on inflation. upward pressures on prices due to commercial disturbances are contained, a reduction in the key rate may be necessary,” said the governor of the Banque du Canada, Tiff Macklem, during the last rate announcement.
The next decision of the Central Bank is scheduled for September 17.
United States: reduction of trade deficit due to a drop in imports
The United States’s trade deficit fell sharply in June, due to a sharp drop in imports, while businesses have constituted stocks in previous months in anticipation of the implementation of customs duties.
In June, the trade balance of American goods and services saw its deficit fall by $ 60.2 billion, according to data published customs rights | canadian exports Tuesday by the Commerce Department, a decline of 16 % compared to May.
It is a little better than what analysts had anticipated, who envisaged a trade deficit at $ 61 billion in June, according to the consensus published by Marketwatch.
This drop in imports concerns in particular pharmaceutical products, the automotive sector and oil, sectors which have been threatened with customs duties or on which it has been imposed, or which have seen the production prices fall back.
Customs rights | canadian exports
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