Canada's merchandise trade deficit widened in August to $6.32 billion as exports fell faster in both value and volume than the rise in imports on a monthly basis, official government statistics showed on Tuesday.

The trade deficit in August was led by a drop in exports not only to its top trading partner, the U.S., but also because its shipments to the rest of the world shrank in the month.

Canada's international trade numbers took a beating early this year as U.S. President Donald Trump imposed sectoral tariffs on the country, forcing businesses to reorient supply chains from its biggest trading partner. But the shift has been volatile and erratic.

Analysts polled by Reuters had forecast the August trade deficit at $5.55 billion, up from $3.82 billion the previous month.

Total exports dropped by three per cent while imports increased 0.9 per cent, Statistics Canada said.

In August, exports to the U.S. were at $44.18 billion, down 3.4 per cent from July, the data collection agency said, adding it was primarily led by unwrought gold exports. But other product categories contributed to the decline, including lumber, machinery and equipment.

Canada's share of exports to the U.S. has been volatile but gradually shrinking. It had fallen below 70 per cent a few months ago before recovering to 73 per cent in August as compared with 75 per cent during the same period last year.

Prime Minister Mark Carney will be meeting with Trump on Tuesday as he comes under pressure to address the impacts of U.S. tariffs on critical sectors such as steel, cars and lumber. But experts have warned against the likelihood of any major deal.

Imports from the U.S. were down 1.4 per cent in August on a monthly basis, shrinking the total trade surplus with its southern neighbour to $6.43 billion from $7.42 billion in July.

Exports to countries other than the United States were down two per cent in August, a third consecutive monthly decline, Statistics Canada said. Lower exports of crude oil and nuclear fuel contributed the most to the monthly decrease.

However, its imports from the rest of the world barring the U.S. rose 4.2 per cent, reaching a record in August, the agency's data showed, pushing Canada's trade deficit with countries other than the United States to a record high of $12.8 billion in August from $11.2 billion in July.