Jul 25, 03:02 PM

Canada’s Trade Deficit Narrows to $5.9 Billion in May Amid Lowest U.S. Exports Since Pandemic and $0.23B Budget Deficit

Canada's merchandise trade deficit narrowed to $5.9 billion in May 2025, down from a record high in April, according to Statistics Canada. This improvement coincided with a drop in exports to the United States, reaching their lowest level since the pandemic. Meanwhile, the federal government reported a budget deficit of $0.23 billion in May, a substantial improvement from the $23.88 billion deficit recorded in the previous month. Year-over-year, the budget deficit for April and May combined stood at $6.5 billion, significantly lower than the $43.15 billion deficit from the same period last year. The federal government's expenditures continue to rise, but Canada's retaliatory tariffs on U.S. goods have partially offset weaker revenue from corporate and sales taxes.

#Canada #Statistics Canada #United States

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