Canada's Trade Surplus Reverses Seven-Month Deficit Trend

Canada posted a C$153 million trade surplus in September, ending seven months of deficits. The surplus, largely driven by increased trade with the U.S., signals a potential stabilization in trade flows. Total exports rose by 6.3%, led by metal and aircraft sectors, while imports decreased by 4.1%.

In an unexpected turn, Canada achieved a trade surplus of C$153 million in September, marking a shift from seven consecutive months of deficits, according to data released by Statistics Canada on Thursday.

The primary factor for this surplus was a significant 44% increase in Canada's trade surplus with the United States. This positive development follows a period of trade challenges triggered by U.S. tariffs imposed during Donald Trump's presidency, which hampered Canadian exports.

Canada's total exports rose by 6.3%, driven by gains in the metal, mineral, and aircraft sectors. Meanwhile, imports fell by 4.1%, contributing to the overall trade balance improvement. Analysts suggest this trend indicates a normalization in Canada's international merchandise trade, especially with the U.S.

(With inputs from agencies.)