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Canada posted a small monthly international trade surplus in September, reversing a trend of seven straight months of deficits, data showed on Thursday.
Statistics Canada reported a slight trade surplus of $153 million in September, following a deficit of $6.43 billion the previous month.
It was the first surplus Canada has recorded since U.S. President Donald Trump threatened and then imposed tariffs on critical industries, stifling significant exports to the U.S., Canada's largest trading partner.
Much of the surplus was driven by a 44 per cent jump in Canada's trade surplus with the United States, according to Statistics Canada.
September trade data, due in November, was delayed because information on Canadian exports to the United States was unavailable due to the 43-day government shutdown in the United States.
Analysts polled by Reuters had forecast a trade deficit of $4.5 billion in September. Economists said trade data showed Canada's international goods trade was finally starting to normalize.
“Overall the situation is really positive,” said Prince Owusu, senior economist at Export Development Canada.
“This seems to indicate that trade flows with the United States are starting to stabilize,” he said, adding that the early trend of diversification from the United States is also continuing.
Canada's total exports rose 6.3 percent to $64.23 billion in September, recovering from a 3.2 percent fall in August, driven by growth in nine of 11 product categories.
This was the largest percentage increase since February 2024. That was driven by U.S. exports, which rose 4.6 percent, while exports to countries other than the U.S. rose 11 percent, Statistics Canada said.
Exports of metallic and non-metallic mineral products, as well as aircraft and transportation equipment and parts, led the growth, increasing by more than 20 percent. According to the agency, in physical terms the total volume of exports increased by 4.1%.
Total merchandise imports fell 4.1 percent to $64.08 billion in September.
Exports to the US increased in August
Exports to the U.S. rose to $45.84 billion from $43.83 billion in August, boosted by outbound shipments of aircraft, light trucks and raw gold, Statistics Canada said.
The United States accounted for more than 71 percent of Canada's exports in September. Imports from the United States fell 1.7 percent in September, the third straight monthly decline, pushing Canada's trade surplus with the United States to its highest level since February.
Increased supplies of raw gold, crude oil and aircraft have led to a surge in exports to countries other than the United States. Imports from countries other than the United States fell 7.3 percent.
Canada's trade deficit with countries other than the United States has narrowed sharply, showing its lowest deficit since October 2024, according to Statistics Canada.
The Canadian dollar strengthened in early trade and traded 0.2 percent higher at 1.3767 per U.S. dollar, or 72.64 U.S. cents. The yield on two-year government bonds fell 0.2 basis points to 2.524 percent.
