As exports to the U.S. increase, Canada's trade deficit narrowed in July.

Jin10 data reported on September 4th that Canada's trade deficit narrowed in July due to an overall rise in exports, particularly driven by crude oil and passenger car exports to the United States. Data shows that Canada's goods trade deficit in July was 4.94 billion CAD, down from 5.98 billion CAD the previous month but still significantly higher than the same period last year. This marks the sixth consecutive month of trade deficits since Trump imposed tariffs on Canada, although it has improved compared to the record deficit of 7.6 billion CAD in April. Following the release of the trade data, the CAD fell 0.2% against the USD. The yield on Canada’s two-year bonds decreased by 0.1 basis points to 2.61%.