Canada’s merchandise trade deficit reached a record high in the second quarter, with June’s gap between exports and imports expanding.

Canada's merchandise trade deficit widened in June to C$5.9 billion ($4.24 billion) as imports grew faster than exports due to a one-time high-value oil equipment import, data showed on Tuesday.

Canada recorded a trade deficit of C$5.86B in June. ETFs: (NYSEARCA:EWC), (NYSEARCA:FLCA). Currency: (USD:CAD) (USD:CAD) More on Canada, Canadian Stocks Reached An All-Time High This Week Equity Markets React To Trump's Tariff Announcements: The Data FLCA: Low Cost,

OTTAWA (Reuters) -The Canadian team working on a trade deal with the United States could walk away from talks in the wake of a U.S. decision to impose a 35% tariff on some goods from Canada, an adviser to Prime Minister Mark Carney said on Friday.

Recent pacts with Britain, Europe and Japan mean that autos exported from those countries and regions face lower U.S. tariffs than Canadian vehicles do.

After Canada failed to strike a trade deal with Washington, the president raised tariffs on some Canadian exports this week.

President Donald Trump said the U.S. was “getting very close” to a deal with China, while also threatening to impose higher tariffs on the European Union as he gave several trade updates early Tuesday.