Driven in part by a steep drop in auto shipments to the United States after President Trump imposed steep tariffs, Canada posted a record trade deficit of 7.1 billion Canadian dollars, about $5.2 billion, in April.
Exports to the United States, Canada’s largest market, were hard hit after the president began his trade war with Canada, declining by 15.7 percent since March, according to data by Statistics Canada, the national census and economic data agency, released on Thursday.
Canada’s economy is heavily dependent on trade, and last year about 75 percent of its exports were sent to the United States.
The drop in demand for Canadian goods in the midst of the tariff turmoil was greater than anticipated. Analysts surveyed by Reuters expected a deficit of 1.5 billion Canadian dollars in April.
Exports of cars and light trucks fell by 22.9 percent after the tariffs went into effect. That more than wiped out a 21 percent increase between November and March likely caused by manufacturers stockpiling vehicles in anticipation of tariffs.
The tariffs have created havoc for the Canadian auto industry, which exports most of its production to the United States. Trade in autos and auto parts between the two countries has been roughly balanced for more than 50 years.
Honda suspended an $11 billion plan to make electric vehicles and batteries in Ontario and shifted production of an S.U.V. model from its Canadian plant to the United States, though the company said that will not affect its overall Canadian output.
And General Motors cut a third shift at a pickup truck plant in Ontario.
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