Canada's Trade Turnaround: Surplus Achieved After Months of Deficit

In September, Canada reversed its trend of trade deficits by recording a small surplus of C$153 million. This was largely due to an increase in trade surplus with the U.S., which saw a 44% jump. Exports rose significantly, driven by sectors like metal products, aircraft, and transportation equipment.

Canada reversed a seven-month streak of trade deficits by posting a small surplus in September, according to Statistics Canada. The surplus was recorded at C$153 million, a turnaround from the C$6.43 billion deficit in the previous month, marking the first surplus since tariffs imposed by former U.S. President Donald Trump.

A 44% surge in the trade surplus with the United States was a significant contributor, with total exports increasing by 6.3% to C$64.23 billion, rebounding from an August decline. Key sectors driving the gain included metal and non-metallic mineral products, as well as aircraft and transportation equipment which saw more than a 20% rise.

Exports to the U.S. specifically grew by 4.6% to C$45.84 billion, while imports fell. Additionally, exports to non-U.S. countries rose by 11%. The combined effect narrowed Canada's trade deficit with countries other than the U.S. to its lowest since October 2024, signaling a robust recovery in trade dynamics.