Statistics Canada announced that, in the context of tariff threats on Canadian goods, Canada’s merchandise exports increased 5.5% im January while imports were up 2.3%. It was a fourth consecutive monthly increase for exports and imports, and both reached record highs in January.
As a result, Canada’s merchandise trade surplus with the world widened from $1.7 billion in December to $4.0 billion in January. This was the largest surplus since May 2022.
The Federal Agency notes that the strong increases in total exports in December and January occurred in the context of announcements from the United States federal government that tariffs on Canadian goods would be imposed. The announcement of tariffs may influence trading patterns and represent an incentive for importers to increase their shipments prior to implementation to avoid additional costs. Exports to the United States increased 7.5% in January and reached a record for a second consecutive month.
Exports of motor vehicles and parts (+12.5%) increased the most in January, mainly because of higher exports of passenger cars and light trucks.
For imports, the largest contributors to the increase in January were imports of aircraft and other transportation equipment and parts (+23.6%), electronic and electrical equipment and parts (+5.8%), and energy products.
Following a 6.8% increase in November and a 6.3% increase in December, exports to the United States rose 7.5% in January, reaching a record of $58.2 billion. Meanwhile, imports from the United States increased 4.7%. As a result, Canada’s merchandise trade surplus with the United States widened from $12.3 billion in December to a record $14.4 billion in January. The recent rise in trade with the United States coincided with threats of tariffs on imported goods.
Exports to countries other than the United States fell 1.0% in January. Lower exports to Switzerland (unwrought gold and aircraft), South Korea (coal) and Germany (various products) were largely offset by a significant increase in exports to China (canola and various other products). Imports from countries other than the United States decreased 1.4% in January. Canada’s trade deficit with countries other than the United States narrowed slightly, from $10.6 billion in December to $10.4 billion in January.
