Helped by volatile gold shipments, the May deficit was down from a record in April and continued to reflect fluctuating tariff policy in Canada’s biggest trade partner and neighbor.

Canada's trade deficit in May met expectations and narrowed after a record breaking deficit in April, data showed on Thursday, as total exports rose and imports fell even as the impact of the U.S. tariffs dented shipments south of the border.

Canada’s share of exports destined for the US shrank to the smallest proportion since at least 1997, excluding the Covid pandemic, while shipments to other countries reached a new high.