Canada records first trade surplus since US trade war, exports surge and imports slide as Canadians avoid buying US Goods

Canada reported its first trade surplus since the start of the US trade war in September, when exports rose 6.3 per cent and imports fell 4.1 per cent, Statistics Canada reported. A trade surplus occurs when a country exports more goods and services than it imports, such as when a company makes a profit by selling more than it spends to produce.

The economy reversed the deficit of $6.4 billion in August and $3.8 billion in July, giving a surplus of $153 million. While exports to markets outside the United States increased by 11 percent, imports from the United States decreased by 1.7 percent for the third consecutive month, while shipments to the United States increased by 4.6 percent.

Statistics Canada said August marked the biggest monthly export increase since February 2024, with nine out of 11 sectors recording gains. The biggest export gains came from metal and non-metallic mineral products, particularly raw gold, silver and platinum group metals and alloys, most of which were shipped to Switzerland, the US and the UK.

Transition from the United States

The data suggest that US trade flows are stabilizing and accelerating diversification despite ongoing tariff uncertainty. Prime Minister Mark Carney is pushing to reduce Canada’s dependence on the United States as its largest trading partner to limit exposure to tariffs and trade war uncertainty. The strategy focuses on diversifying export markets, securing new trading partners and investing in domestic projects. It also includes expanding key resource sectors to meet growing global demand.

While Canada expanded aluminum exports to markets such as the Netherlands and Italy, crude oil exports increased by 5.8 percent in September, driven by strong demand from Germany; Singapore was also a major buyer of oil and aircraft. While exports increased by 0.3 percent on an annual basis, imports decreased by 1.9 percent.
“Overall the story is really positive,” said Prince Owusu, senior economist at Export Development Canada, according to the Global News website.

correct level

The Bank of Canada kept the interest rate unchanged at 2.25 percent, saying borrowing costs were “at the right level” to support economic growth while maintaining price stability.

buy canadian

A growing sense of patriotism among consumers is fueling the “Buy Canadian” movement; many customers are deliberately turning away from goods manufactured in or sourced from the United States. According to the website Global News, an Ipsos poll found that 72 per cent of Canadians actively avoid US-made products, while in a separate survey in September, six in 10 people said they would never trust the US in the same way again.