Statistics Canada (StatsCan) released the long overdue trade report for Canada’s economy in September yesterday. The release was delayed due to the US government shutdown, which hindered StatsCan’s data collection. The data showed that Canada’s economy ran a trade surplus for the first time since January, benefiting from a large increase in exports. Canada’s economy is heavily reliant on trade. Trade disruption with the US, which serves as its largest trade partner, has hindered economic activity since the imposition of tariffs.

• Canada’s economy had a trade surplus of $153 million in September. This marked its first surplus since January. Canada had an $8.6-billion trade surplus with the US, while having a trade deficit with other nations around the world.
• Exports of goods from Canada rose by 6.3% to $64.2 billion, marking the highest value of exports since March 2025. September’s increase was driven by a sharp rise in shipments of metal and non-metallic mineral products. Aluminum and energy exports also increased in September.
• On the other hand, imports dropped by 4.1% to $64.1 billion. Purchases of consumer goods and pharmaceutical products declined.
• The US also released trade data from September. The US economy had a trade deficit of US$52.8 billion, which was slightly smaller than in August. Exports rose by 3.0% and imports increased by a smaller 0.6%.

Diversifying trade partners seems to be working for Canada’s economy. The government continues to build and develop trading relationships with countries outside of the US. The Canada-United States-Mexico Agreement (CUSMA) is up for review next year. US President Donald Trump is unsure whether he will keep CUSMA. Trade uncertainty will continue to linger until Canada finalizes its trade position with the US.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.