Canada records small trade surplus in September after several months of deficit

Canada recorded a small monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits, data showed Thursday.

Statistics Canada said it recorded a marginal trade surplus of $153 million in September, down from a deficit of $6.43 billion in the previous month.

It is the first surplus Canada has posted since U.S. President Donald Trump threatened and subsequently imposed tariffs on key sectors, blocking vital exports to the U.S., Canada’s biggest trading partner.

Statistics Canada data show that the bulk of the surplus was driven by a 44 per cent increase in Canada’s trade surplus with the US.

September trade data, which was due in November, was delayed because information on Canadian exports to the US was unavailable due to the 43-day government shutdown.

Analysts polled by Reuters had estimated the trade deficit in September at $4.5 billion. Economists said the trade numbers show Canada’s international merchandise trade is finally beginning to normalize.

“The overall story is really positive,” said Prince Owusu, senior economist at Export Development Canada.

“It seems that trade flows with the United States are beginning to stabilise,” he said, adding that the trend of diversification that started with the US is also continuing.

Canada’s total exports rose 6.3 per cent to $64.23 billion in September, better than a 3.2 per cent decline in August and driven by higher exports in nine of 11 product segments.

This was the largest percentage increase since February 2024. Statistics Canada said it was led by a 4.6 per cent increase in US exports and an 11 per cent increase in exports to countries other than the US.

Exports of metallic and non-metallic mineral products and aircraft and transportation equipment and parts increased by more than 20 percent. The agency said total exports in volume terms increased by 4.1 percent.

Total merchandise imports declined by 4.1 percent to $64.08 billion in September.

Exports to America increased in August

Statistics Canada said exports to the United States rose to $45.84 billion in August from $43.83 billion, helped by outbound shipments of aircraft, light trucks and crude gold.

The US accounted for more than 71 per cent of Canada’s exports in September. Imports from the United States fell 1.7 per cent in September, the third consecutive monthly decline, pushing Canada’s trade surplus with the United States to its highest level since February.

Exports to countries other than the US jumped due to higher shipments of crude gold, crude oil and aircraft. Imports from countries other than America declined by 7.3 percent.

Statistics Canada said Canada’s trade deficit with countries other than the United States has narrowed sharply, reaching the lowest deficit since October 2024.

The Canadian dollar strengthened in early trading and was up 0.2 percent at US$1.3767, or 72.64 US cents. The yield on two-year government bonds declined 0.2 basis points to 2.524 percent.