US Trade Deficit Widens Nearly In Line With Estimates In June

US Trade Deficit Widens Nearly In Line With Estimates In June

"Canada's merchandise trade deficit narrowed from C$2.7bn in May to C$0.6bn in June".

Canada's overall merchandise trade deficit with the rest of the world dropped dramatically in June to 626 million Canadian dollars (about 482 million USA dollars), the lowest since January 2017, Statistics Canada said Friday.

The value of steel shipments fell to C$536.8 million in June from May while exports of aluminum to the United States, subject to a 10 percent tariff, dropped 7.0 percent to C$851.2 million.

Petroleum exports, however, rose to a record high in June. But that was offset by a $68.8 billion deficit in the trade of goods.

Meanwhile, imports from the United States were up 0.3 per cent to $32.9 billion, resulting in Canada's trade merchandise trade surplus with the US rising to $4.1 billion.

"There's no debating this is a solid report", said Bank of Montreal senior economist Benjamin Reitzes in a note to clients.

Canada's dollar strengthened 0.3 per cent to $1.2987 per USA dollar at 8:52 a.m. Toronto time.

The US bilateral trade deficits also expanded with China, the European Union, Canada and Mexico - all of which have retaliated against Trump's aggressive tariffs.

Anthony Martial offered in exchange for Bayern Munich star — SWAP DEAL
Or they are investing massively, like for example Liverpool, buying everything and everybody. They open the Premier League season against Leicester City at Old Trafford on Friday.

Assassination by drone? Venezuela's President avoids plot to kill
One was "diverted" by security forces while the second fell on its own and hit an apartment building, Reverol said. Attackers are believed to have used two DJI M600 drones that each carried 1 kilogram of C-4 explosive.

Travis Scott Sparks Controversy After Removing Transgender Model From ‘Astroworld’ Album Cover
Well, maybe, but then again Travis Scott isn't known for his inclusivity, having said some pretty questionable things in the past. I'm too distracting for the eyes! "I love @david_lachapelle and @travisscott ❗️Love and kisses ❤️" to her own Instagram post .

Statscan said that exports increased in eight of 11 industry sectors.

In a flurry of activity this year, he has slapped taxes on imported steel and aluminum and on $34 billion in Chinese products. Last month, the Trump administration began following through with a March threat of tariffs on tens of billions of dollars of imported Chinese goods, prompting China to respond with retaliatory levies on high-value USA exports such as soybeans. Exports of passenger cars and light trucks were up 5 per cent in the month.

"Trade relations with the USA could be causing importers down south to stock up", he said in a research note. "Consequently, we look for soybean exports to weaken back to their normal run rate in coming months, which could exert some headwinds on overall export growth".

Many economists believe the looming trade dispute with China may also have contributed to an out-of-season surge in USA soybean exports in the second quarter that could reverse going forward.

As the Federal Reserve gradually tightens interest rates, the U.S. dollar also has risen steadily since April, making American exports more expensive to foreign buyers.

"The advance in real exports, coupled with the retreat in real imports in the second quarter should allow trade to add to GDP in Q2 after five negative contributions in a row". Bank of Montreal formally raised its estimate to 3.3 per cent - a half percentage point higher than the Bank of Canada's most recent projection.

The latest numbers add to the case for the Bank of Canada to raise rates again in the near-term, Nye said, adding that he expects the central bank to continue its gradual approach to increasing the interest rates.

Related Articles