Canada's trade surplus widens to more than four-year high in September

Canada posted a trade surplus of C$5.35 billion ($3.83 billion) in September, highest since May 2022, data showed on Wednesday, ‌helped by gold and higher energy exports primarily to the United States.

Higher shipments of these two categories south of the border increased exports to the US by 0.7% in September, widening Canada's trade surplus with its biggest trading partner to C$12.3 ‌billion, from C$12.1 in August, Statistics Canada said. This took Canada's share of exports to the US ‌past 70% for the first time thirteen months.

Excluding gold and energy, exports in September dropped 5.6% as a set of new tariffs imposed by President Donald Trump hurt Canadian exports. In volume terms, exports were down 4%.

Analysts polled by Reuters had forecast a trade surplus of C$4.10 ⁠billion in ​September, slightly down from ⁠an upwardly C$4.95 billion in August. The monthly goods trade number is an important indicator of how Canadian exporters are faring and adapting after months ⁠of US tariffs. It also shows how the war in Iran have helped Canadian export revenues due to higher crude oil ​and product prices.

Exports of metal and non-metallic mineral products increased 8.6% in September, led by exports of unwrought ⁠gold which surged 16.8% and contributed the most to the monthly gain. Exports of energy products jumped by 8.2%. StatsCan said that many export categories ⁠such ​as consumer goods, electronic and electrical equipment and parts and industrial machinery showed significant decreases as these were hit by Trump's new tariffs.

Trump, whose Republican party lost control of both the chambers of Congress in Tuesday's mid-term ⁠elections, slapped a set of new tariffs on Canadian exports in September after trade talks collapsed. However, this week both ⁠the countries indicated that talks for ⁠a renewed trade deal have intensified.

Total imports dropped 0.3% in September led by motor vehicle and parts and consumer goods. Exports to countries other than the United States ‌fell 1.1% in September ‌while imports dropped 1.4%, StatsCan said.