Canada Faces Steep Climb in International Trade Deficit

Canada's international trade deficit surged to C$2.2 billion in November, with significant declines in metal and nonmetallic exports. These drops were exacerbated by a 43-day U.S. government shutdown impacting data collection. Exports to and imports from various countries fluctuated, affecting trade balances critically.

Canada's trade deficit reached C$2.2 billion in November, as metal and nonmetallic exports plummeted dramatically, according to Statistics Canada data released Thursday. The downturn was compounded by a 43-day U.S. government shutdown, which disrupted trade data collation.

Aside from a minor surplus in September, Canada's trade balance has been negative largely due to U.S. tariffs. These tariffs have hit sectors such as steel, automotive, and lumber, correlating with President Trump's tariff sanctions.

Exports to the U.S. dropped less than imports, widening Canada's surplus with the U.S. to C$6.6 billion. Meanwhile, Canada's trade deficit with non-U.S. countries expanded to C$8.8 billion as exports decreased and imports rose, led by gains from China and Germany.

(With inputs from agencies.)