Statistics Canada reports that the country’s merchandise exports declined 5.3% in March, while imports were down 1.2%. As a result, Canada’s merchandise trade balance with the world went from a surplus of $476 million in February to a deficit of $2.3 billion in March. This represents the largest trade deficit since June 2023.
The Federal agency notes that, overall, decreases in exports were observed in 9 of the 11 product sections. As was the case in February, exports of unwrought gold were the main contributor to the monthly variation in total exports. Excluding the product group for unwrought gold, exports were down 3.2% in March.
After increasing 5.2% in February, total imports were down 1.2% in March. Overall, 7 of the 11 product sections decreased.
Exports to the United States fell 5.0% in March, while imports decreased 1.1%. As a result, Canada’s merchandise trade surplus with the United States narrowed from $8.5 billion in February to $6.5 billion in March.
Exports to countries other than the United States were down 6.5% in March, in large part because of lower exports to Switzerland (unwrought gold), France (nuclear fuel), and the United Kingdom (unwrought gold and crude oil). Imports from those countries (-1.3%) also fell, in part due to lower imports from Mexico (passenger cars and light and medium trucks) and Japan (light trucks).
Canada’s trade deficit with countries other than the United States widened from $8.0 billion in February to $8.8 billion in March.