OTTAWA, Aug 4 (Reuters) - Canada's trade surplus in June hit a four-year high of C$3.86 billion ($2.75 billion) but the number largely reflected a weaker Canadian dollar rather than economic strength, Statistics Canada said on Tuesday.
Analysts polled by Reuters had estimated a June surplus of C$3.00 billion in June. May's surplus was revised sharply down to C$3.70 billion from an initial C$4.24 billion.
Most import and export transactions are completed in U.S. dollars and must be converted to Canadian dollars to compile trade statistics.
"All other things being equal, when the Canadian dollar depreciates against the U.S. dollar, monthly trade values expressed in Canadian dollars are higher," Statscan said.
In June, the average value of the Canadian dollar decreased by 1.7 U.S. cents compared with May, the largest monthly decline since October 2022.
In Canadian dollar terms, exports rose by 0.4% and imports edged up by 0.2%. But when expressed in U.S. dollars, exports dropped by 2.0% in June while imports posted a 2.1% loss.
The surplus was the highest since May 2022.
Exports were pushed up in part by a 16.5% jump in the value of shipments of metal and non-metallic mineral products.
The overall increase was largely offset by a 10.0% decrease in exports of energy products on lower prices. Imports were boosted by higher imports of processing units of the type used in data centers.
Although Ottawa is seeking to diversify trade in the face of President Donald Trump's tariffs, Canada remains heavily reliant on the U.S. market and in June, 69.5% of all exports flowed south of the border.
Exports to the United States edged up by 0.3% while imports rose by 3.0%. As a result, Canada's trade surplus with the United States narrowed to C$9.98 from C$11.12 billion in May.
($1=$1.4044 Canadian)
Reporting by David Ljunggren, editing by Dale Smith
