In October, Canadian exports to the United States dropped to their lowest level since 1997, excluding pandemic impacts. The value of goods sent to the U.S. decreased by 4.1%, while imports from the U.S. rose by 5.3%. Consequently, Canada’s trade surplus with the U.S. decreased from $8.4 billion in September to $4.8 billion. This decline followed the imposition of tariffs by former U.S. President Donald Trump and calls from Prime Minister Mark Carney for diversifying trade.
Overall, Canada reported a trade deficit of $583 million in October, lower than expected, as imports outpaced exports. This marked the eighth deficit out of nine months in 2025. Analysts had predicted a deficit of $1.36 billion. Statistics Canada revised September’s surplus to $243 million from the initial $153 million.
In October, total imports increased by 3.4% following a 4.3% decline in September. Notably, imports of electronic equipment surged by 10.2%, driven by high shipments of computers. On the other hand, exports grew by 2.1%, driven by demand for precious metals. Excluding these metals, total exports fell by 2.5%.
Exports to countries other than the U.S. reached a new high in October, rising by 15.6%, with notable increases in gold shipments to Britain and oil exports to China. The data release was delayed due to a U.S. government shutdown, with November’s data expected to be released on January 29.