Canada saw a turnaround in its international trade balance in September, shifting from seven consecutive months of deficits to a small surplus, according to data released on Thursday. Statistics Canada reported a modest trade surplus of $153 million for September, a significant improvement from the $6.43 billion deficit recorded in the previous month.
This marked the first surplus Canada has seen since facing tariff threats and impositions from U.S. President Donald Trump, which had a notable impact on the country’s exports to its largest trading partner, the U.S. The majority of the surplus was attributed to a 44% increase in Canada’s trade surplus with the U.S.
The September trade figures, initially scheduled for release in November, were delayed due to a 43-day U.S. government shutdown that hindered the availability of data on Canadian exports to the U.S. Analysts had projected a trade deficit of $4.5 billion for September, but the actual numbers indicated a positive shift in Canada’s international trade dynamics.
Export Development Canada’s senior economist, Prince Owusu, described the overall trade situation as highly encouraging, suggesting that trade relations with the U.S. were stabilizing. He noted a continued trend of diversification away from the U.S. market, indicating a positive development.
In September, Canada’s total exports surged by 6.3% to reach $64.23 billion, rebounding from a 3.2% decline in August. This growth was driven by increased exports across nine out of eleven product categories, marking the largest percentage increase since February 2024. Notably, exports of metal and non-metallic mineral products, as well as aircraft and transportation equipment, experienced significant gains.
On the import side, total merchandise imports decreased by 4.1% in September to $64.08 billion. Exports to the U.S. notably increased from $43.83 billion to $45.84 billion in August, with strong performances in aircraft, light trucks, and unwrought gold exports.
The Canadian dollar strengthened in early trading sessions, gaining 0.2% against the U.S. dollar to 1.3767, equivalent to 72.64 U.S. cents. Additionally, yields on two-year government bonds decreased by 0.2 basis points to 2.524%, reflecting positive market sentiment towards Canada’s trade performance.
