The trade deficit widened to C$1.99 billion ($1.91 billion), compared with a revised C$1.32 billion gap in July, Statistics Canada said. Exports dropped 5.1 percent to C$29.2 billion, due almost entirely to lower volumes.
Canada, which had a three-decade run of trade surpluses until last December, has been posting record deficits this year amid slumping sales to U.S. and a strengthening Canadian dollar, which has traded this week at the strongest levels in more than a year.
Total imports also declined, falling 2.8 percent to C$31.2 billion. Adjusting for price movements, export volumes fell 5 percent while import volumes were down 0.3 percent.
Canada’s trade surplus with the U.S., its largest trading partner, narrowed to C$2.17 billion from C$2.21 billion in July.
Exports of machinery and equipment plunged 10.4 percent during the month, led by aircraft and telecommunication equipment, the statistics agency said.
Exports of agricultural goods and fishing products were down 10.3 percent, while sales abroad of industrial goods such as metals and minerals fell 3.3 percent. Exports of automotive products declined 5.5 percent as foreign sales of trucks and vehicles other than cars plunged 35 percent, reflecting truck manufacturing plant closures” in Canada, the agency said.