In October, exports to the United States comprised 67.3 percent of all exports, marking the lowest level since 1997. Canadian exports to the U.S. decreased by 4.1 percent, while imports rose by 5.3 percent, resulting in a drop in Canada’s trade surplus to $4.8 billion from $8.4 billion the previous month. This decline followed the imposition of tariffs by U.S. President Donald Trump on Canadian imports and Prime Minister Mark Carney’s emphasis on the importance of diversifying trade.
Official data released on Thursday showed that Canada recorded a trade deficit of $583 million in October, smaller than expected, as imports grew faster than exports. Analysts had predicted a deficit of $1.36 billion. The revised surplus for September was $243 million, up from the initial $153 million. This marked the eighth trade deficit out of nine months in 2025.
Following a 4.3 percent decline in September, total imports increased by 3.4 percent in October. Notably, imports of electronic and electrical equipment and parts surged by 10.2 percent, driven by high shipments of computers and peripherals. On the other hand, exports saw a modest 2.1 percent increase, mainly due to strong demand for unwrought gold, silver, platinum group metals, and their alloys. Excluding this product group, overall exports decreased by 2.5 percent.
Exports to countries other than the U.S. rose by 15.6 percent, reaching a new peak, boosted by gold shipments to Britain and oil exports to China. The release of the October data was delayed due to a prolonged U.S. government shutdown, with November’s data scheduled for release on January 29.
