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Statistics Canada announced that Canada’s merchandise exports posted a strong increase in March, rising 8.5%, while imports fell 1.6%. As a result, Canada’s merchandise trade balance with the world went from a deficit of $5.1 billion in February to a surplus of $1.8 billion in March. This is the first trade surplus since September 2025.

The Federal Agency notes that total exports rose to $72.8 billion in March, the highest level since January 2025. Amid the uncertainty surrounding the economic repercussions stemming from the conflict in Iran, some product sections saw sharp movements. In particular, exports of metal and non-metallic mineral products and of energy products posted the largest monthly increases. Excluding these two product sections, exports increased more moderately (+1.1%) in March. Overall, export gains were observed in 7 of the 11 product sections.

Following a record high in February, total imports were down 1.6% in March. Overall, declines were observed in 8 of the 11 product sections. Imports of consumer goods decreased 3.9% in March. After rising 13.0% in February, imports of aircraft and other transportation equipment and parts dropped 12.8% in March.

Exports to the United States rose 8.3% in March, reaching their highest level since March 2025. Exports of crude oil and passenger cars and light trucks drove the increase. Meanwhile, imports from the United States decreased 1.2%, in part due to lower imports of aircraft. Following the low of $2.9 billion observed in February, the trade surplus with the United States widened to $7.1 billion in March, its highest level since September 2025.

After increasing 10.2% in February, exports to countries other than the United States rose 9.1% to $24.3 billion in March, setting a record high for a second consecutive month. Higher exports to the United Kingdom (gold), Germany (crude oil) and the Netherlands (crude oil) drove the increase. Imports from countries other than the United States fell 2.2% in March. Lower imports from Australia (gold) and South Korea (light trucks) were partly offset by higher imports from China (various products) and Germany (various products).

As a result, Canada’s trade deficit with countries other than the United States narrowed from $8.0 billion in February to $5.3 billion in March, the smallest deficit since January 2021.