Trade surplus narrows to $1.6b as exports dip and imports rise

Statscan's trade report also shed more light on the damage inflicted by the USA -imposed tariffs of 25 per cent on Canadian steel and 10 per cent on aluminum that began in June, as well as Canada's subsequent retaliatory tariffs against a diverse basket of US goods.

The Commerce Department said on Wednesday the trade gap jumped 9.5 percent to $50.1 billion, increasing for a second straight month, suggesting that trade could be a drag on economic growth in the third quarter.

Deficits in goods with China and the European Union reached all-time highs.

The government announced import duties on goods including steel, aluminum, washing machines and solar panels earlier this year.

In addition to subtracting from growth, the high deficit could rekindle Trump's ever-present ire about how the United States is treated by its trading partners, and prompt him to unleash steep tariffs on a massive amount of Chinese goods this week.

Canada's overall exports rose 0.8 per cent in July to a record $51.3 billion, the agency said.

The deficit with Canada also widened, according to the report released shortly before Washington and Ottawa were due to resume talks aimed at salvaging the North American Free Trade Agreement as a three-nation pact with Mexico.

It was the second consecutive month that saw the deficit widen, following the surge of exports in May amid a flurry of buying to outrun tariffs imposed in USA markets overseas. The near-elimination of Canada's trade deficit in July was, then, nearly entirely thanks to cross-border business with the United States.

Woman regrets her photos of 'Cosby' actor working at store
Lawrence said she acted on impulse and did not mean any harm. "It wasn't malicious", she said. "It wasn't malicious. I'm not the monster they're making me out to be. "The people taking his picture and passing judgment are trash".

Suarez Navarro sends Sharapova crashing out of US Open
Things grew tougher in the second as a sluggish Djokovic laboured before again clinching the set with a break. At the beginning of the second set, I could feel like a breeze, like a little wind, and it was cooler.

Florence becomes hurricane as it heads towards Bermuda
Early Tuesday, Gordon was packing maximum sustained winds of 65 miles per hour - short of the 74-mph threshold for a hurricane. He added: "Right now Tropical Storm warnings in effect and Hurricane warnings to our east along the Mississippi Gulf Coast".

USA financial markets were little moved by the data. The value of Canada's energy exports to the United States is up almost 50 per cent from a year ago - accounting for a swing of about $3-billion in the monthly bilateral trade balance all by itself.

The trade deficit with the European Union soared 50 percent to a record high of $17.6 billion.

So far this year, the trade deficit is up 7 percent from January-July 2017. This happened as exports of soybeans and civilian aircraft dropped, while imports hit a record high.

In July, exports of goods and services fell 1.0 percent to $211.1 billion.

Imports of petroleum hit the highest level in four years at $23.6 billion, on the highest price in four years of an average $64.63 a barrel.

Imports rose 0.9 percent to a record $261.2 billion, boosted by purchases of computers, oil and autos. They were helped by imports of computers and computer parts.

Apparently, Canada's export fortunes also still depend heavily on oil prices - to the chagrin of anyone who had imagined Canada's economy had put the driver of its previous cycle behind it. Pharmaceutical preparations imports, however, fell $1.3 billion.

Latest News