In February, Canada’s merchandise exports decreased 5.5%, while imports were up 0.8%. As a result, Canada’s merchandise trade balance with the world went from a surplus of $3.1 billion in January to a deficit of $1.5 billion in February, according to a recent Statistics Canada report.
Due to the implementation of the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) digital initiative and delays in the receipt of merchandise import data at Statistics Canada, estimates were added to the collected values in order to produce a more complete picture of Canada’s import activity from November 2024 to February 2025, it said.
After increasing 15.9% from September 2024 to January 2025, total exports decreased 5.5% in February. The strong volatility in recent months occurred amid threats by the United States to impose tariffs on Canadian goods. Overall, declines were observed in 10 of the 11 product sections. In real (or volume) terms, total exports declined 5.0% in February, following a real increase of 4.8% in January, said the report.
“Exports of energy products (-6.3%) posted the largest decline in February, the first decrease since September 2024. Several product subcategories contributed to the decline in February 2025. Exports of crude oil (-4.2%) fell on lower prices; refined petroleum product exports (-15.3%) were down due to lower shipments of diesel, mainly to the United States and Panama; coal exports (-26.9%) decreased primarily on lower shipments to Asian countries; and exports of natural gas (-8.9%) fell mostly on lower prices. Excluding energy products, total exports were down 5.3% in February,” said StatsCan.
“After reaching their highest level since 2000 in January, exports of motor vehicles and parts (-8.8%) decreased in February, mainly because of lower exports of passenger cars and light trucks (-15.3%). This decline came after these exports—in the context of tariff threats—reached a peak in January 2025. The Canadian auto manufacturing industry is deeply integrated with the US industry, as 93.4% of exports of passenger cars and light trucks were destined to the United States in 2024 on a customs basis.
After increasing 2.4% in January, total imports rose 0.8% in February, a fifth consecutive monthly gain. The largest contributors to the increase in February were imports of motor vehicles and parts (+5.8%), industrial machinery, equipment and parts (+3.1%), energy products (+5.2%) and metal and non-metallic mineral products (+3.5%). In real (or volume) terms, total imports (+0.0%) were essentially unchanged in February, said the report.
“After rising for three consecutive months and reaching a record high in January, exports to the United States were down 3.6% in February, representing a decrease of $2.1 billion. Meanwhile, imports rose 2.5% in February. As a result, Canada’s merchandise trade surplus with the United States went from a record of $13.7 billion in January to $10.6 billion in February,” explained StatsCan.
“Exports to countries other than the United States fell 12.4% in February, representing a decline of $2.0 billion. Lower exports to the United Kingdom (unwrought gold) and Germany (various products) were partially offset by higher exports to South Korea (various products). Imports from countries other than the United States were down 2.0% in February. Canada’s trade deficit with countries other than the United States widened from $10.6 billion in January to a record $12.1 billion in February.”
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