MNI BRIEF: Canada May Trade Deficit Down From Record High

Canada's trade deficit was CAD5.9 billion in May following April's record CAD7.6 billion as exporters grew sales in other markets to offset some of the damage from U.S. tariffs.

Exports to the U.S. were down 0.9%, marking the fourth decline in a row while shipments to other nations rose 5.7% to a record high, Statistics Canada said Thursday from Ottawa. Total exports rose 1.1% after the prior drop of 11%. The agency also boosted its estimate of April's global trade deficit from the initial reading of CAD7.1 billion. 

The BOC has said the decision on whether to cut rates again after pausing at the last two meetings likely hinges on whether Donald Trump and Mark Carney can meet a goal of a new trade deal by July 17, ahead of the Bank's next meeting on July 30. 

Canada's share of exports to the U.S. is now 68.3% in May, one of the lowest on record. (See: MNI INTERVIEW: Tariff Uncertainty Means Lower BOC Rates- Ragan)