March 13, 2026

Canada's merchandise trade deficit widens to $3.6 billion in January

Statistics Canada announced that Canada's merchandise exports decreased 4.7% in January, while imports were down 1.1%. As a result, Canada's merchandise trade deficit with the world widened from $1.3 billion in December to $3.6 billion in January.

The Federal Agency notes that, after a rise of 2.5% in December, the January export drop was the largest percentage decline since April 2025. In January, decreases were observed in 6 of the 11 product sections.

Decreases in imports were observed in 7 of the 11 product sections. Imports of motor vehicles and parts decreased 4.5% in January. Imports of electronic and electrical equipment and parts fell 3.6%.

Exports to the United States decreased 3.8% in January, while imports from the United States fell 3.4%. As a result, Canada's merchandise trade surplus with the United States narrowed slightly from $5.7 billion in December to $5.4 billion in January.

After reaching a record high in December, exports to countries other than the United States were down 6.5% in January. The decline was mostly due to lower shipments of unwrought gold to the United Kingdom. Imports from countries other than the United States increased 2.1% in January, due in part to higher imports of industrial machinery from China. Canada's trade deficit with countries other than the United States widened from $7.0 billion in December to $9.0 billion in January.