U.S. to Hit Canada with Broad 50% Tariffs

Canada recorded a trade surplus of C$3.86 billion in June of 2026, widening from the C$3.7 billion in May to mark the largest surplus in over four years. Exports rose by 0.4% from the previous month to a record high of C$77.5 billion. Sales rose sharply for metal and non-metallic products (16.5% to C$15.02 billion) amid a 27.9% surge in sales of gold, mostly to the UK. Sales of metal ores and non-metallic minerals rose by 17.3% to C$3.14 billion with support from copper ores. These offset the 10% plunge in energy products (to C$18.37 billion) as the momentary respite in the Middle East war had lowered energy prices. Meanwhile, imports rose by 0.2% to a record of C$73.6 billion with drops in industrial machinery, equipment, and parts (-3.3% to C$7.6 billion) and metal ores and non-metallic minerals (-3.4% to C$2.81 billion). The depreciation of the Canadian dollar in the period lifted trade turnover expressed in the loonie, contributing to the rise in both imports and exports.

Canada faces the threat of steep new U.S. trade measures after the Trump administration on Monday announced plans to impose a 50% tariff on Canadian imports starting in 30 days, accusing Ottawa of discriminating against U.S. exports, including alcohol, automobiles, and dairy products. The White House said the tariffs would cover a broad range of goods, from hockey sticks to cement, and would also apply to products covered under the U.S.-Mexico-Canada Agreement (USMCA) that had been exempt from previous tariff actions. Only a limited number of products would be spared, including energy, critical minerals, potash, fish, and goods already subject to sector-specific Section 232 tariffs. The move marks a significant escalation in trade tensions between the two neighboring economies and could disrupt cross-border supply chains if implemented.

Canada posted a trade surplus of C$4.24 billion in May of 2026, picking up from an upwardly revised C$3.41 billion surplus in the previous month and above market expectations of a C$2.9 billion to mark a third consecutive positive balance of trade. Exports rose by 0.9% to a record high of $77.1 billion, a fourth consecutive increase. Foreign sales surged 37% for non-metallic minerals as the war in the Middle East triggered a global supply crunch of sulphur and lifted prices for Canadian sales. Exports were also higher for aluminum and alloys (50.7%) and broader consumer goods (3.9%), offsetting a 2% decline in energy products as oil and gas prices eased. In the meantime, imports fell by 0.2% from the record high last month to $72.9 billion. The drop was solely due to a 33% slide in gold, silver, and platinum group metals. These were enough to offset higher foreign purchases elsewhere.