Canada saw a small international trade surplus in September after seven consecutive months of deficits, according to data released on Thursday. Statistics Canada reported a modest surplus of $153 million for the month, a significant shift from the $6.43 billion deficit in the previous month. This marked Canada’s first surplus since U.S. President Donald Trump imposed tariffs on key sectors, impacting exports to the U.S., Canada’s primary trading partner.
The increase in the surplus was primarily due to a 44% rise in Canada’s trade surplus with the U.S. The delay in releasing the September trade data was due to a lack of information on Canadian exports to the U.S. caused by a 43-day U.S. government shutdown.
Economists had anticipated a trade deficit of $4.5 billion for September, but the actual numbers indicate a positive trend in Canada’s international trade. Analysts view the trade surplus as a sign that Canada’s trade flow, especially with the U.S., is stabilizing, and the diversification of trade away from the U.S. is continuing.
Canada’s total exports in September increased by 6.3%, reaching $64.23 billion, with growth in nine out of 11 product categories. Notably, exports of metal and non-metallic mineral products, aircraft, and transportation equipment and parts saw significant gains. On the other hand, total merchandise imports decreased by 4.1% to $64.08 billion in September.
Exports to the U.S. rose to $45.84 billion, up from $43.83 billion in August, driven by exports of aircraft, light trucks, and unwrought gold. The U.S. accounted for over 71% of Canada’s exports in September. Meanwhile, imports from the U.S. declined by 1.7%, marking the third consecutive monthly decrease and leading to Canada’s highest trade surplus with the U.S. since February.
Exports to countries other than the U.S. also saw an increase, particularly in unwrought gold, crude oil, and aircraft, while imports from non-U.S. countries dropped by 7.3%. Canada’s trade deficit with countries outside the U.S. reached its lowest level since October 2024.
Following the positive trade data, the Canadian dollar strengthened against the U.S. dollar in early trading, with yields on two-year government bonds slightly decreasing.