Canada's trade deficit plunged in April as tariffs kicked in

Canada has reported its biggest drop in exports in nearly 17 years due to US tariffs, pushing the country's trade deficit to a record high.

Canada posted a trade deficit of $7.1 billion in April, its highest ever, as demand from the US weakened. The trade deficit in March was $2.3 billion.

Total exports fell 10.8 per cent in April, the third consecutive monthly decline and the biggest decline since December 2008 during the global financial crisis, excluding the Covid period, according to data released by Statistics Canada on Thursday.

Exports to the US fell 15.7 per cent and imports from the US fell 10.8 per cent, according to Statistics Canada. However, the data shows that Canada's exports to other countries have increased but have not been able to compensate for the decline in exports to the United States.