Ottawa, January 8, 2026: Canada reported a smaller-than-expected trade deficit of C$583 million in October, as imports grew faster than exports, according to official data released by Statistics Canada on Thursday. Analysts had forecast a significantly wider deficit of C$1.36 billion.
Data for September were also revised, with the country’s trade balance adjusted to a surplus of C$243 million from an earlier estimate of C$153 million.
October marked Canada’s eighth trade deficit in the past nine months of 2025, a year shaped by global trade uncertainty after U.S. President Donald Trump imposed tariffs on several Canadian imports. During the same period, Prime Minister Mark Carney has repeatedly underlined the need for Canada to diversify its trade relationships beyond the United States.
Exports to the U.S. accounted for 67.3 per cent of Canada’s total exports in October, the lowest share outside the pandemic period since the current data series began in 1997. While total imports rebounded by 3.4 per cent in October after a 4.3 per cent decline in September, exports rose a modest 2.1 per cent.
The increase in imports was driven largely by a 10.2 per cent surge in electronic and electrical equipment and parts, supported by record shipments of computers and computer peripherals. On the export side, higher demand for unwrought gold, silver and platinum group metals provided support. However, excluding precious metals, overall exports fell by 2.5 per cent.
Trade with the United States weakened during the month, with exports declining by 4.1 per cent while imports from the U.S. rose 5.3 per cent. This narrowed Canada’s trade surplus with its largest trading partner to C$4.8 billion, down sharply from C$8.4 billion in September.
In contrast, exports to non-U.S. destinations jumped 15.6 per cent to a record high, boosted by strong shipments of gold to Britain and oil to China, highlighting early signs of diversification.
The release of the October trade data had been delayed from its original December 4 schedule due to a prolonged U.S. government shutdown. Statistics Canada said November’s trade figures are scheduled to be released on January 29.
