08:56 AM EDT, 08/05/2025 (MT Newswires) -- Canada's deficit in goods trade was little changed in June, although with plenty of moving pieces in the details due to the United States tariff policy, said CIBC after Tuesday's release of the data.

The $5.9 billion shortfall in June was slightly wider than a revised $5.5 billion deficit in the prior month -- previously it was a $5.9 billion deficit-- with the change on the month reflecting a sharper increase in imports (+1.4%month over month) than exports (+0.9%).

However, the rise in imports was linked to a one-time high-value shipment that saw a spike in industrial machinery imports. Excluding this, imports would have fallen by almost 2% month over month, driven largely by consumer goods.

On the export side, energy products drove the increase, although partly linked to higher prices. That meant that in inflation-adjusted terms, total exports were down by 0.4% month over month in June.

The doubling of U.S. steel and aluminum tariffs early in the month had a clear impact, with exports in both areas down by just over 11%. Auto exports also continued to decline. For Q2 as a whole, inflation-adjusted exports slumped by 9% while imports were down by 1.5%.

While Tuesday's data suggested an increase in two-way trade on the surface, the details were weaker, with imports exaggerated by one high-value shipment and export growth driven in part by higher energy prices, stated the bank.

While trade flows should stabilize in the months ahead, the level of trade will remain lower than it was previously due to ongoing U.S. tariff policy and related uncertainty, added CIBC.