In October, exports to the United States accounted for 67.3% of all Canadian exports, marking the lowest level since 1997 using the current data calculation method. The value of goods shipped to the U.S. from Canada decreased by 4.1%, while imports from the U.S. rose by 5.3%. Consequently, Canada’s trade surplus with the U.S. dropped to $4.8 billion from $8.4 billion in the previous month, following the imposition of tariffs by U.S. President Donald Trump on Canadian imports and Prime Minister Mark Carney’s emphasis on the need for trade diversification.
Overall, Canada reported a trade deficit of $583 million in October, which was smaller than anticipated, as imports grew at a faster rate than exports. Analysts had predicted a deficit of $1.36 billion. Statistics Canada revised September’s surplus to $243 million from the initial $153 million. This marked the eighth trade deficit in nine months in 2025.
Following a 4.3% decline in September, total imports increased by 3.4% in October. The rise in imports was driven by a 10.2% surge in electronic and electrical equipment and parts imports, especially computers and peripherals. On the other hand, exports saw a modest increase of 2.1%, primarily due to strong demand for unwrought gold, silver, platinum group metals, and their alloys. Excluding this product group, total exports fell by 2.5%.
Moreover, exports to countries other than the U.S. rose by 15.6% in October, reaching a record high. This increase was supported by gold shipments to Britain and oil exports to China. The release of the trade data was delayed due to a U.S. government shutdown, with November’s data set to be released on January 29.