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Canada's Trade Exposure to the US Continues to Decline in June, Scotiabank Says

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Canada's reliance on the US as an export market continued to decline in June, with the share of exports to its southern neighbor falling to 70% from an average of 76% in 2024 and 72% last year, according to Scotiabank Economics in a Tuesday note.

The decline reflects faster growth in exports to non-US markets, particularly Europe, wrote Scotiabank in its note after the release of June's merchandise trade surplus data.

June exports to the US rose 0.3% from May and 24% year-over-year, partly supported by higher oil prices, said the bank. Exports to other markets increased 0.7% month over month and were up 50.9% from 2024, largely reflecting stronger gold shipments.

On the import side, Canada's reliance on US suppliers also eased gradually, with the US share of imports falling to 60% in June from an average of 62% in 2024, added Scotiabank.

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