Canada Trade Surplus Widens With Rise in Oil, Gold Exports — Update

By Robb M. Stewart

OTTAWA--Canada's goods-trade surplus with the world widened to the most in over four years in September as elevated oil prices and increased U.S. purchases of unwrought gold pushed exports to a fresh record high.

Canada recorded a merchandise-trade surplus of 5.35 billion Canadian dollars, the equivalent of about US$2.82 billion, Statistics Canada said Wednesday. That was the widest since May 2022, though shy of the C$6 billion median forecast among economists.

The country has now racked up surpluses seven straight months, after August's balance grew to an upwardly revised C$4.95 billion. The trade surplus for the third quarter was little changed, however, at C$11.21 billion.

Monthly exports of Canadian goods edged up 0.2% despite signs the latest U.S. tariffs dented demand, while the value of imports slipped 0.3% even with a rise in inbound shipments of the type of processing units used in data centers, the national data agency said.

The rise in exports was narrow and owed much to higher prices, with shipments in volume terms down 4% for the month. While exports of energy products and metal and non-metallic minerals were up, declines were seen in eight of the 11 product categories tracked by Statistics Canada.

Exports to the U.S. rose a second month running, increasing 0.7% from the month before thanks mainly to deliveries of crude oil and gold. Imports from Canada's biggest trading partner were up 0.4%, led by processing units. That widened Canada's longstanding surplus with its neighbor to C$12.33 billion, the highest since January 2025 before President Trump's initial tariffs were imposed, from C$12.1 billion in August.

Exports to countries other than the U.S. dropped by 1.1% in September, a second straight pullback from a record high in July, while imports from non-U.S countries declined 1.1%, mainly with a fall in inbound passenger cars and light trucks. Canada's trade deficit with countries beyond the U.S. narrowed slightly to C$6.98 billion from C$7.12 billion the month before.

September marked the first full month since the U.S. imposed new 50% tariffs on the equivalent of roughly 5% of Canadian exports and Ottawa retaliated with levis on a similar share of U.S. trade.

Canada's exports of consumer goods, electronic and electrical equipment, industrial machinery and parts, motor vehicles and parts, and forestry products and building and packaging materials each fell. Statistics Canada notes this included several products targeted by the new U.S. tariffs that had seen a sharp rise in August amid tariff front-running.

Bank of Canada Gov. Tiff Macklem on Tuesday told lawmakers economic growth is likely to slow in the fourth quarter as the new U.S. tariffs weigh on activity, but then pick up again in 2027 as exports increase, consumer spending continues, and business investment strengthens.

The trade data will feed into official gross domestic product for the third quarter, which is currently tracking growth of about 1.3% on an annualized basis compared with the 2% expansion the central bank has forecast. The Bank of Canada last week raised its policy interest rate a quarter percentage point, the first increase since July 2023.

In an effort to pivot the country away from a reliance on the U.S. and strengthen its resilience, Prime Minister Mark Carney is targeting a doubling of non-U.S. exports over a decade. The share of Canadian goods destined for countries other than the U.S. decreased to 29.8% in September from 30.1% a month earlier.

Over the third quarter, Canadian exports nudged up 0.2%, a fifth consecutive increase, led by shipments of aircraft and other transportation equipment, and metals and minerals. Imports rose a fourth quarter in a row, increasing 0.2% for the latest period with a rise in electronics and electrical equipment, and industrial machinery and equipment.

When international trade in goods and international trade in services were combined, Canadian exports in September were up 0.3% and imports rose 0.1%. As a result, Canada's trade surplus incorporating both goods and services widened to C$5.68 billion in September from C$5.4 billion the previous month.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 04, 2026 09:02 ET (14:02 GMT)