The Canada’s commercial deficit was reduced to $ 506 million in March, exceeding expectations as imports fell to a faster rate than the drop in exports, according to the data on Tuesday.
Assets imports fell 1.5 percent in March, driven by a 2.9 percent drop in imports from the USA. After Canada imposed reprisal rates to its neighbor after the 25 percent tariff of President Donald Trump about steel and Canadian aluminum from March 12.
Exports to the US also fell by 6.6 percent, but was almost compensated by an increase in exports to the rest of the world, Statistics Canada said.
The analysts surveyed by Reuters had estimated that the total commercial deficit would be extended to $ 1.56 billion in March, above the $ 1.41 billion reviewed in February.
Trump’s tariff threats had pushed Canadian companies to advance in supplies south of the border, which increases commercial surpluses in December and January. But as the tariffs seized, shipments to the United States have pressed.
The United States is the largest commercial partner of Canada and Trump’s tariffs have harmed trade, investments and jobs on both sides of the border.
Prime Minister Mark Carney will meet with Trump on Tuesday to begin conversations on a comprehensive trade and security agreement, which experts have said that they could eventually lead to reducing the loading of tariffs in Canada.
Exports fall for the second consecutive month
The general exports of Canada for March sat at $ 69.9 billion, below the $ 70.04 billion in February, led by the US. This was the second consecutive month where exports fell.
“Despite the two consecutive monthly decreases, export levels remained relatively high in March, registering a 10.2 percent increase compared to the same month of the previous year,” said Statistics Canada, adding that the lowest prices mainly led to the fall.
In terms of volume, exports increased 1.8 percent in March, the agency said. However, imports fell into terms of value and volume.
They fell for the first time in five months, with the largest taxpayers being metal and non -metallic mineral products (in 15.8 percent) and energy products (in 18.8 percent).
In terms of volume, total imports decreased by 0.1 percent in March.
Imports in March were $ 70.40 billion, below $ 71.44 billion.
