Statistics Canada announced that Canada’s merchandise merchandise exports were up 1.1% in May, while imports fell 1.6%. As a result, Canada’s merchandise trade deficit with the world narrowed from a record $7.6 billion in April to $5.9 billion in May.
The Federal Agency notes that May’s rise in exports follows the significant decline of 11.0% in April and is the first exports increase in four months. The preceding monthly declines coincided with the implementation of tariffs on imports of Canadian goods in the United States. Overall, increases were observed in 7 of the 11 product sections. Exports of metal and non-metallic mineral products posted the largest increase, mainly on higher exports of unwrought gold.
Total imports were down 1.6%, a third consecutive monthly decline. Decreases were observed in 5 of the 11 product sections, with imports of metal and non-metallic mineral products posting the largest decline.
Amid the recent implementation of tariffs on imports of Canadian goods in the United States, Canada’s exports to the United States decreased 0.9% in May, a fourth consecutive monthly decline. From a monthly average of 75.9% in 2024, Canada’s share of exports destined to the United States was 68.3% in May, one of the lowest proportions on record. Meanwhile, imports from the United States were down 1.2% in May, a third consecutive monthly decrease. Canada’s merchandise trade surplus with the United States widened slightly, from $3.1 billion in April to $3.2 billion in May.
Exports to countries other than the United States rose 5.7% in May to reach a record high. Higher exports to the United Kingdom (unwrought gold), Singapore (crude oil) and Italy (unwrought aluminum and pharmaceutical products) were partially offset by lower exports to China (canola and crude oil). Meanwhile, imports from countries other than the United States decreased 2.0% in May. Total merchandise trade (exports plus imports) with countries other than the United States increased to $47.6 billion in May, a third consecutive record high. Canada’s trade deficit with countries other than the United States narrowed from $10.7 billion in April to $9.1 billion in May.
