Canada’s merchandise exports fell by three per cent in August to a seasonally adjusted $60.5 billion. This was the second lowest month of the year after April as sales to the U.S. retreated. Imports rose by 0.9 per cent to a seasonally adjusted $66.9 billion during the month. Consequently, the trade deficit grew to $6.3 billion, down from a revised $3.8 billion in July. …The decline was led by a 21.2 per cent drop in forestry products and a 12.5 per cent decline in energy products. The steep decline in forestry products in August 2025 followed the increase of anti-dumping and countervailing duty rates on Canadian softwood lumber that took effect in the U.S. in late July and early August. Section 232 tariffs on lumber in effect in October will be a further headwind. …Year-to-date exports are down slightly (-0.1 per cent) with lower forestry products and building and packaging materials exports (-6.1 per cent)