Statistics Canada says both merchandise imports and exports rose in August, pushing the trade deficit to $622 million from $539 million the previous month.
The agency says imports grew by 0.7% and exports increased 0.5% in August.
Imports increased to $38.5 billion as prices rose 0.8% and volumes fell by 0.1%.
Exports rose to $37.9 billion, with higher prices recorded in most sectors.
Prices increased 1.6% while volumes declined 1.1%.
Exports to the United States were down 2.3% to $26.6 billion, while imports from south of the border rose 2% to $24.1 billion.
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