In October, Canadian exports to the United States dropped to 67.3%, marking the lowest level since data tracking began in 1997, excluding pandemic-related impacts. The value of exports to the U.S. decreased by 4.1%, while imports rose by 5.3%. Consequently, Canada’s trade surplus with the U.S. declined to $4.8 billion from $8.4 billion in September, following tariff actions by U.S. President Donald Trump and calls from Prime Minister Mark Carney for trade diversification.
Overall, Canada posted a trade deficit of $583 million in October, smaller than expected, as imports outpaced exports. This figure contrasted with analysts’ projections of a $1.36 billion deficit. The data, released on Thursday, indicated the eighth trade deficit in nine months in 2025, with Statistics Canada revising September’s surplus to $243 million from the initial $153 million.
The October trade data showed a 3.4% increase in total imports following a 4.3% decline in September. Notably, imports of electronic and electrical equipment surged by 10.2%, driven by robust shipments of computers and peripherals. On the other hand, exports grew by 2.1% due to strong demand for unwrought gold, silver, and platinum group metals. Excluding this category, overall exports decreased by 2.5%.
Meanwhile, exports to countries other than the U.S. soared by 15.6%, reaching a record high, buoyed 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.