Canada's goods exports fell 2.3% month over month to C$76.14 billion in July 2026, while imports rose 2.2% to C$75.37 billion. The resulting trade surplus plunged 82% to C$769 million from a four-year high of C$4.2 billion in June, well below economists' C$3.57 billion forecast. July marked the first export decline in six months but the fifth consecutive monthly surplus. Energy and metal products drove the deterioration, with their combined value falling 4.4%; crude oil exports dropped 5.5% as prices and volumes declined, while metal and non-metallic mineral products fell 8.5%. Motor vehicle and parts imports rose 11.4%, mainly from the United States, while aircraft and other transportation equipment exports jumped 34.9%. Exports to the United States fell 6.6%, shrinking Canada's bilateral surplus by more than 40% to C$5.9 billion. The U.S. share of Canadian exports declined to 66.35% from 69.39% in June and 72.64% a year earlier. Exports to markets outside the United States rose 7.4% to a record C$25.6 billion, narrowing the non-U.S. trade deficit to C$5.1 billion. Stuart Bergman, chief economist at Export Development Canada, described the lower U.S. export share as encouraging amid diversification efforts. The Canadian dollar rose 0.35% to C$1.3792 per U.S. dollar after the release. July trade flows largely preceded the full effect of Washington's new 50% duties on certain Canadian goods, leaving exporters facing a more difficult period as the tariffs enter subsequent data.