Statistics Canada says the country's trade deficit increased to $3.4 billion in August compared with a $3.0-billion deficit in July.
The agency says a decline in exports drove the increased trade deficit, while imports were unchanged.
Overall exports slipped 1.0 per cent to $43.6 billion in August. Export volumes fell 1.9 per cent for the month.
The drop came as exports of consumer goods and basic and industrial chemical, plastic and rubber products, as well as metal ores and non-metallic minerals moved lower. Exports excluding energy products were down 1.4 per cent.
Meanwhile, total imports were virtually unchanged in August at $47 billion.
Canada's trade surplus with the United States narrowed to $2.3 billion in August compared with $3.2 billion in July as the Canadian dollar strengthened relative to the U.S. currency.
The country's trade deficit with countries other than the United States slipped to $5.7 billion in August compared with $6.2 billion in July.