As a result, Canada's merchandise trade surplus narrowed from 2.6 billion Canadian dollars (about 2 billion U.S. dollars) in June to 778 million Canadian dollars in July.
In real or volume terms, total imports rose 1.9 percent in July, while exports fell 0.3 percent as higher prices had a significant impact on import and export values.
Exports prices increased sharply since the end of last year, up 16.7 percent in July compared with December 2020.
Total imports jumped 4.2 percent in July to reach a record high of 53 billion Canadian dollars. Imports were up in 9 of 11 product sections.
After a sharp increase of 7.5 percent in June, total exports rose 0.6 percent in July to 53.7 billion Canadian dollars, another record high.
In July, increases in a number of different product sections were partially offset by a sharp decline in lumber exports. Excluding exports of lumber and other sawmill products, total exports rose 2 percent.
Imports from the United States soared 8.4 percent in July to a record high of 34.1 billion Canadian dollars while exports to the United States rose 3.6 percent to 40.8 billion Canadian dollars, which was also a record high. Both increases were mainly attributable to growth in the trade of motor vehicles and parts.
Canada's trade surplus with the United States narrowed from 7.9 billion in June to 6.7 billion Canadian dollars in July.
Imports from countries other than the United States decreased 2.6 percent in July, down for the second consecutive month. Imports from China, Mexico and Japan saw the largest declines.
Exports to countries other than the United States fell 7.6 percent in July, with sharp decreases in exports to China.
In July, monthly service exports rose 1.2 percent to 9.7 billion Canadian dollars while service imports increased 3.7 percent to 10 billion Canadian dollars.
Combining goods and service trade, Canada's exports rose 0.7 percent to 63.5 billion Canadian dollars in July while imports increased 4.1 percent to 63 billion Canadian dollars.
As a result, Canada's trade surplus with the world for goods and services narrowed from 2.5 billion Canadian dollars in June to 477 million Canadian dollars in July.