Canada Records First Trade Surplus Since Trump-Era Tariffs

Canada posted a small trade surplus in September after seven months of deficits, marking the first surplus since tariffs imposed by President Trump. Boosted by a strong trade surplus with the U.S., exports surged 6.3%, while imports decreased 4.1%. Analysts had predicted a trade deficit.

In a significant economic shift, Canada achieved a trade surplus in September, snapping a streak of seven consecutive monthly deficits, according to Statistics Canada. This marked the first surplus since tariffs on key sectors were imposed by President Donald Trump, affecting exports to the U.S., Canada's primary trading partner.

Canada's trade surplus was driven largely by a 44% surge with the U.S., aided by increased exports of aircraft, light trucks, and unwrought gold. This development was pivotal as exports grew by 6.3% to C$64.23 billion, rebounding from a decrease observed in the previous month. Additionally, total imports saw a 4.1% decline.

September's trade figures, albeit delayed due to a U.S. government shutdown, outperformed analyst expectations, who had forecasted a C$4.5 billion deficit. Exports beyond the U.S. also rose significantly, narrowing Canada's trade deficit with other nations to its lowest level since October 2024.