Mark Carney in dire straits: After job crisis, Canada now faces record trade deficit due to Trump's auto tariffs

Time of India

a day ago

Canada's Trade Deficit Hits Record High
Canada's Auto Exports Collapse After Donald Trump's Tariffs
Canada's Trade Surplus with US Shrinks
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Trade with Other Countries Reaches New Highs
Energy and Consumer Goods Also Affected
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Canada's economic woes are deepening as the nation's trade deficit recorded a record-high in April, fueled significantly due to the decline in automobile exports to the United States after US president Donald Trump imposed tariffs, according to a report.The national statistics agency revealed that the deficit increased to C$7.1 billion (US$5.2 billion), which was greater than three times the rate of the preceding month, and Statistics Canada said "was the largest deficit on record," reported AP.The exports dropped sharply in Canada's crucial auto industry, where sales of motor vehicles and parts to the United States plummeted, as per the report. Statistics Canada attributed the drop to the imposition of significant tariffs, between 25% and 50%, by the Trump administration on Canada's automotive, steel, and aluminium sectors, reported AP. The tariffs led Canadian producers to slow down production in April, which caused a steep decline in exports, as per the report.Statistics Canada said that, "After tariffs on foreign motor vehicles were imposed by the United States at the beginning of the month, manufacturers in Canada reduced production in April, resulting in a sharp drop in these exports," quoted AP report.According to AP, this pushed Canada's trade surplus with the United States down to C$3.6 billion (US$2.6).However, even though exports to the United States have dropped by 26.2% since January, Canada's trade with other nations has hit "an all-time high," led by exports to China, the United Kingdom, Algeria, and Brazil, as per the AP report.While, Canada's exports of consumer goods and energy products have also fallen, the drop in energy products is partly because of lower oil prices with lower demand driven by economic uncertainty over Trump's trade policies, reported AP.No. Trade with other countries like China, the UK, Brazil, and Algeria actually went up.They were down during April, and demand was lower amid global uncertainty, partly caused by US protectionist trade policies.