Canada imports rose 0.9% in Aug, led by gold

Canada imports rose 0.9% in Aug, led by gold

Canada's imports surged by 0.9% in August, driven primarily by a significant increase in gold shipments, according to data analyzed by Bank of Montreal (BMO). This uptick in imports comes amidst a backdrop of expected trade deficit widening and potential impacts from the U.S. government shutdown .

The August merchandise trade deficit is projected to expand to $6.0 billion from $4.9 billion in July, largely due to lower energy prices affecting export values. Meanwhile, a negative manufacturing flash point is expected to weaken imports and non-energy exports. Despite U.S. tariffs rising to 35% on August 1, BMO anticipates a limited impact on Canadian shipments, as most are exempt under the USMCA trade agreement .

Gold imports were the primary driver of the increase, contributing to the overall rise in imports. The U.S. government shutdown could potentially delay the September trade data release and affect the Q3 gross domestic product report, as Statistics Canada relies on U.S. customs data .

Additionally, the Ivey PMI for September will be released at 10 a.m. ET on Tuesday, providing further insight into Canada's manufacturing sector. Prime Minister Mark Carney's meeting with President Donald Trump in Washington on Tuesday may also yield relevant economic headlines, although the Canadian side has attempted to set expectations low .

Investors and financial professionals should closely monitor these developments, as they may influence future economic policies and market trends.