In October, exports to the United States made up 67.3% of all Canadian exports, marking the lowest level since data tracking began in 1997. The value of goods sent to the U.S. declined by 4.1%, while imports rose by 5.3%. Consequently, Canada’s trade surplus with the U.S. decreased to $4.8 billion from $8.4 billion in the previous month, following tariffs imposed by former U.S. President Donald Trump and calls for trade diversification by Prime Minister Mark Carney.
Overall, Canada reported a trade deficit of $583 million in October, smaller than anticipated, as imports outpaced exports. Analysts had predicted a deficit of $1.36 billion. September’s surplus was revised to $243 million from an initial $153 million. This marked the eighth trade deficit in nine months during 2025.
The release of the trade data was delayed due to a U.S. government shutdown, with November’s data set to be released on January 29. Imports in October rebounded by 3.4% after a 4.3% drop in September, with notable increases in electronic equipment and parts imports. Exports increased by 2.1%, driven by demand for certain metals, while total exports excluding these products fell by 2.5%.
Notably, exports to countries other than the U.S. surged by 15.6%, reaching a record high, led by gold shipments to Britain and oil exports to China. This diversification in trade partners has been seen as a positive development amidst changing global trade dynamics.