Canada’s exports fell 7.5% in this year’s second quarter due to U.S. tariffs and weakening global demand.
According to Statistics Canada, the Q2 export decline was driven by U.S. tariffs on key Canadian products such as steel, aluminum and automobiles.
The drop in exports during the April through June quarter was the largest decline since 2009, which occurred during the U.S. financial crisis and great recession.
The export drop in this year’s second quarter included manufacturing, wholesaling and employment, all of which saw stalled growth due to tariffs.
A survey by Statistics Canada found that 54% of manufacturers and 44% of wholesalers say they have been negatively impacted by U.S. tariffs.
The report also states there was no employment growth in Canada’s manufacturing and wholesale sectors from February to August of this year.
Employment in Canada’s private sector has been below 2% for the past 17 months.
The report also states that Canadian businesses that engage in cross-border trade with the U.S. are looking for mitigation strategies to help manage tariff impacts.
A third (33%) of businesses reported passing cost increases caused by tariffs onto customers in the last six months, and 40% of businesses say they are likely to do so in the next year.
