In October, Canadian exports to the United States dropped to 67.3%, marking the lowest level since 1997 under normal circumstances. The value of Canadian exports to the U.S. decreased by 4.1%, while imports from the U.S. increased by 5.3%. Consequently, Canada’s trade surplus with the U.S. declined to $4.8 billion from $8.4 billion in the previous month following the imposition of tariffs by former U.S. President Donald Trump and Prime Minister Mark Carney’s emphasis on diversifying trade.
Overall, Canada reported a trade deficit of $583 million in October, which was smaller than expected, as imports grew faster than exports. This information comes from official data released on Thursday. Analysts had predicted a deficit of $1.36 billion. Statistics Canada revised the surplus for September to $243 million from the initial $153 million. Notably, this marked the eighth trade deficit in nine months for Canada in 2025.
Despite a 4.3% decline in September, total imports rose by 3.4% in October. Particularly, imports of electronic and electrical equipment and parts surged by 10.2%, driven by significant shipments of computers and peripherals. On the other hand, exports increased by 2.1%, mainly due to strong demand for unwrought gold, silver, platinum group metals, and their alloys. Excluding this specific product group, total exports decreased by 2.5%.
Exports to countries other than the U.S. saw a notable increase of 15.6%, reaching a new peak, boosted by gold shipments to Britain and oil exports to China. The release of the trade data was delayed due to a prolonged U.S. government shutdown, with November’s data expected to be released on January 29.