Statistics show that Canada's merchandise trade surplus for July plummeted 82% compared to the previous month.

This data is drawing attention as it reflects the trend just before the trade war between the United States and Canada fully reignited.

Statistics Canada announced on the 3rd local time that the merchandise trade surplus for July stood at 769 million Canadian dollars, marking an 81.7% decrease from the previous month's 4.2 billion Canadian dollars.

Exports fell 2.3% from the previous month to 76.14 billion Canadian dollars, while imports rose 2.2% to 75.37 billion Canadian dollars.

The decline was particularly steep in trade with the United States, Canada's largest trading partner.

In July, Canada's exports to the U.S. dropped by 6.6%, recording the largest decline since April of last year.

Meanwhile, imports of U.S. goods increased by 1.8%, driven mainly by passenger cars and light trucks.

Canada's trade surplus with the U.S. shrank by 42.7% from the previous month to 5.9 billion Canadian dollars.

This is the lowest level since last February.

The proportion of the U.S. in total exports also dropped to 66.3%.

Except for the COVID-19 pandemic period, this is the lowest level since 1997.

A year ago, the U.S. proportion was 72.6%.

The U.S. administration under Donald Trump newly imposed a 50% tariff on approximately 20 billion dollars worth of Canadian goods on August 22, and Canada plans to impose retaliatory tariffs of up to 50% on the same scale of U.S. goods starting on the 8th.

As statistics show that Canada's exports to the U.S. declined starting in July—before the additional U.S. tariffs were levied—projections suggest that the future trading environment will become even more challenging.

(Photo: AP, Yonhap News)