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. The deficit observed in June is the second highest on record after the deficit dipped to its largest in history n April to C$7.

The deterioration in goods trade is likely to have weighed heavily on Canada’s economy in the April to June period, as shipments of items from cars to metals targeted by protectionist U.S. policies slumped. And while exports to the U.S., by far Canada’s largest market, advanced in June, that was due mainly to higher oil prices.

Canada goods trade deficit increased substantially to C$5.9 billion ($4.24 billion) in June, as imports outpaced exports