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On August 1, 2025, President Trump signed an executive order raising tariffs on Canadian imports from 25% to 35%, targeting goods not covered under the USMCA (United States–Mexico–Canada Agreement). A new 40% tariff also now applies to products routed through third countries, aimed at blocking transshipment.

Canada’s Trade Minister Dominic LeBlanc has described negotiations with U.S. officials — including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer— as “informative, productive, constructive, and cordial”, noting that while there has been progress, “we’re not yet where we need to be to get the deal that’s in the best interest of the two economies.” He also confirmed that a call between President Trump and Prime Minister Mark Carney is expected “in the next number of days”, and while LeBlanc remains hopeful of a resolution, no formal breakthroughs have been announced so far.

According to Reuters, Canada’s merchandise trade deficit widened to $5.9 billion in June 2025, driven by imports rising faster than exports, largely due to a one‑time high‑value oil equipment import for an offshore project. This marked Canada’s second-largest monthly trade deficit on record, after April’s historic $7.6 billion shortfall.

While exports rose 0.9% to C$61.74 billion — boosted by higher crude oil prices — export volumes actually fell 0.4%. Imports climbed 1.4% to $67.6 billion, but excluding the unusual oil module, they would have declined 1.9%.

Export growth to the U.S. increased 3.1% in value, yet remained 12.5% lower year-over-year, and trade with non-U.S. partners fell 4.1%, the first decline since February 2025