Canada Trade Deficit Widens More Than Expected

2026-03-12 12:42 By Felipe Alarcon 1 min. read

Canada’s trade deficit widened to C$3.6 billion in January 2026 from a C$1.3 billion deficit in December and way more than the expected C$0.9 deficit.

Exports fell 4.7% m/m to C$62.48 billion, with motor vehicle and parts exports down 21.2% as production stoppages affected passenger car shipments, while aircraft and other transportation equipment and parts decreased 16.0%.

These declines were partly offset by a 4.1% increase in energy product exports, driven by natural gas.

Exports to the US decreased 3.8%.

Imports decreased 1.1% to C$66.13 billion, led by lower imports of motor vehicles and parts (-4.5%) and electronic and electrical equipment and parts (-3.6%), even as imports of industrial machinery, equipment and parts rose 3.4%.

As a result, Canada’s surplus with the US narrowed to C$5.4 billion, while the deficit with countries other than the US widened to C$9.0 billion.



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Canada Trade Deficit Widens More Than Expected
Canada’s trade deficit widened to C$3.6 billion in January 2026 from a C$1.3 billion deficit in December and way more than the expected C$0.9 deficit. Exports fell 4.7% m/m to C$62.48 billion, with motor vehicle and parts exports down 21.2% as production stoppages affected passenger car shipments, while aircraft and other transportation equipment and parts decreased 16.0%. These declines were partly offset by a 4.1% increase in energy product exports, driven by natural gas. Exports to the US decreased 3.8%. Imports decreased 1.1% to C$66.13 billion, led by lower imports of motor vehicles and parts (-4.5%) and electronic and electrical equipment and parts (-3.6%), even as imports of industrial machinery, equipment and parts rose 3.4%. As a result, Canada’s surplus with the US narrowed to C$5.4 billion, while the deficit with countries other than the US widened to C$9.0 billion.
2026-03-12
Canada Trade Deficit Shrinks More Than Expected
Canada’s trade deficit narrowed to C$1.31 billion in December 2025 from a C$2.58 billion deficit in November and beating expectations for a C$2.1 billion deficit. Exports rose 2.6% m/m to C$65.63 billion, with metal and non-metallic mineral exports up 18.0% as unwrought gold and related shipments rebounded, while aircraft and other transportation equipment and parts jumped 20.5% to a record high. These gains were partly offset by a 1.0% decline in energy product exports. Exports to the US increased 1.1%. Imports increased 0.6% to C$66.93 billion, led by higher imports of motor vehicles and parts (+5.1%) and metal and non-metallic mineral products (+7.7%), even as consumer-goods imports fell 4.5%. As a result, Canada’s surplus with the US narrowed to C$5.7 billion, while the deficit with countries other than the US narrowed to C$7.0 billion.
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Canada Trade Deficit Widens More Than Expected
Canada’s trade deficit widened to C$2.20 billion in November 2025 from a C$0.395 billion deficit in October and way more than the expected deficit of C$0.7 billion. Exports fell 2.8% m/m to C$63.94 billion, with metal and non-metallic mineral exports plunging 24.4% as unwrought gold and related shipments reversed after strong gains, while motor vehicles and parts dropped 11.6%. These moves were partly offset by an 8.5% rise in energy exports, with crude oil and crude bitumen up 7.6% on higher volumes. Exports to the US fell 1.8%. Imports edged down 0.1% to C$66.14 billion, led lower by motor vehicles and parts (-4.5%) and energy imports (-10.6%; crude oil -30.2%), even as consumer-goods imports (including pharmaceuticals and clothing) increased. As a result, Canada’s surplus with the US widened to C$6.6 billion, while the deficit with non-US partners widened to C$8.8 billion.
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