February 20, 2026

Canada's merchandise trade deficit narrows to $1.3 billion in December

Statistics Canada announced that Canada's merchandise exports increased 2.6% in December, while imports were up 0.6%. As a result, Canada's merchandise trade deficit with the world narrowed from $2.6 billion in November to $1.3 billion in December.

The Federal Agency notes that the December rise in exports follows a 2.2% decrease in November. Despite the increase, declines were observed in 7 of the 11 product sections. As was the case in recent months, exports of metal and non-metallic mineral products (+18.0%) posted the largest monthly variation. Excluding exports of this product section, exports edged down 0.2% in December.

Import gains were observed in 6 of the 11 product sections. Imports of motor vehicles and parts were up 5.1% in December, mainly because of higher imports of passenger cars and light trucks.

After falling in the previous two months, exports to the United States increased 1.1% in December. Meanwhile, imports from the United States were up 3.5%. As a result, Canada's merchandise trade surplus with the United States narrowed from $6.5 billion in November to $5.7 billion in December.

Exports to countries other than the United States rose 5.8% in December to reach an all-time high. Increased shipments of unwrought gold to the United Kingdom contributed the most to the growth in the month. Imports from countries other than the United States fell 3.0% in December, with widespread decreases observed across various countries. Canada's trade deficit with countries other than the United States narrowed from $9.0 billion in November to $7.0 billion in December.