Canada posts $1.8B merchandise trade surplus in March

Canada’s merchandise exports rose 8.5 per cent in March while imports fell 1.6 per cent, pushing the country’s trade balance from a $5.1 billion deficit in February to a $1.8 billion surplus, according to new data released by Statistics Canada.

It marked Canada’s first merchandise trade surplus since September 2025.

Exports totalled $72.8 billion in March, the highest level since January 2025, driven largely by gains in gold and crude oil shipments amid uncertainty tied to the conflict in Iran.

Exports of metal and non-metallic mineral products climbed 24 per cent to a record $15.3 billion. Shipments of unwrought gold, silver and platinum group metals rose more than $3 billion, or 37.7 per cent, largely due to higher gold exports to the United Kingdom.

Energy product exports increased 15.6 per cent to $17.1 billion, the highest level since September 2022, as crude oil exports jumped 18.9 per cent on higher prices.

Exports of motor vehicles and parts also rose 4.5 per cent in March following a 24.9 per cent increase in February. Statistics Canada said higher exports of passenger cars and light trucks reflected increased auto production in Canada.

Meanwhile, imports fell after reaching a record high in February. Imports of consumer goods declined 3.9 per cent, led by a 9.3 per cent drop in pharmaceutical product imports.

Imports of aircraft and other transportation equipment and parts fell 12.8 per cent, largely due to a sharp decline in aircraft imports from the United States after elevated activity in February.

Canada’s trade surplus with the U.S. widened from $2.9 billion in February to $7.1 billion in March as exports south of the border rose 8.3 per cent and imports from the U.S. fell 1.2 per cent.

Exports to countries other than the U.S. rose 9.1 per cent to a record $24.3 billion, driven by higher shipments of gold to the United Kingdom and crude oil exports to Germany and the Netherlands.

On a quarterly basis, Canada’s merchandise trade deficit widened from $4.2 billion in the fourth quarter of 2025 to $6.5 billion in the first quarter of 2026.

In real, or volume, terms, exports edged down 0.6 per cent in the first quarter while imports rose 3.3 per cent.