Core Insights - Canada's merchandise trade showed an increase in exports and a decrease in imports in May, leading to a narrowing trade deficit [1][3] - The trade deficit improved from a record 7.6 billion CAD in April to 5.9 billion CAD in May, indicating a marginal improvement in Canada's trade situation [3] Export Performance - Merchandise exports grew by 1.1% to 60.81 billion CAD, marking the first increase in four months, driven by demand in key sectors [1] - Unrefined gold exports surged by 30.1% to a record 5.9 billion CAD, primarily directed to the UK, influenced by international gold price fluctuations and strong UK demand [5] - Exports of consumer goods increased by 2.6%, with significant contributions from meat (up 13.1%) and processed seafood (up 52.9%), reflecting Canada's competitive edge in agricultural processing [6] - Exports to countries outside the US rose by 5.7%, reaching a historical high, indicating progress in diversifying trade partners [6] Import Trends - Imports fell by 1.6% to 66.66 billion CAD, marking the third consecutive month of decline [1][8] - The decline in imports was led by a 16.8% drop in metal and non-metal mineral products, particularly unrefined gold and silver, which saw a 43.2% decrease [7] - Consumer goods imports increased by 4.3%, driven by demand for video game consoles and pharmaceuticals, reflecting a recovery in domestic consumption [8] Trade Partner Dynamics - Trade with the US showed a slight increase in surplus from 3.1 billion CAD in April to 3.2 billion CAD, despite continuous declines in both exports and imports [9] - Exports to China decreased by 21.3%, primarily due to reduced canola and crude oil exports, while imports from China grew by 3.0%, leading to an expanded trade deficit of 3.72 billion CAD [10] - Exports to the UK surged by 28.9%, driven by gold exports, resulting in a trade surplus of 4.55 billion CAD, while imports from the UK fell by 49.2% [12] - Exports to Italy increased by 73.8%, indicating deepening trade cooperation in specific product areas [13]

Group 1 - The technology industry warns that Trump's tariff policy could lead to an annual increase of over $123 billion for American consumers on 10 common consumer tech products [1] - The Consumer Technology Association (CTA) estimates that prices for non-exempt Chinese imports will rise significantly, with video game consoles potentially exceeding $1,000, reflecting a 69% increase [1][2] - The CTA predicts that price changes in just 10 popular tech products could result in an annual economic contraction of $69 billion in the U.S. [2] Group 2 - The CTA highlights that even small price increases, such as $5 for headphones or $60 for speakers, could lead to over $2.5 billion in economic losses nationwide [2] - By 2023, China is expected to account for 87% of U.S. video game console imports, 78% of smartphones, 79% of laptops and tablets, and 67% of monitors, indicating a heavy reliance on Chinese manufacturing [2] - The CTA advocates for more exemptions and urges the Trump administration to reconsider the use of tariffs to force manufacturing back to the U.S., noting that such efforts could lead to a loss of consumer purchasing power [5]