Canada's trade deficit narrows to $506M in March, driven by slump in U.S. imports

Thomson Reuters

· Posted: May 06, 2025 9:19 AM EDT | Last Updated: 9 minutes ago

Canada's commercialized shortage narrowed to $506 cardinal successful March, beating expectations arsenic imports fell astatine a faster complaint than the driblet successful exports, information showed connected Tuesday.

Imports of goods dropped 1.5 per cent in March, driven by a 2.9 per cent slump successful imports from the U.S. aft Canada imposed retaliatory tariffs connected its neighbour pursuing President Donald Trump's 25 per cent tariff connected Canadian alloy and aluminum from March 12.

Exports to the U.S. besides dropped by 6.6 per cent but was astir compensated by an summation successful exports to the remainder of the world, Statistics Canada said.

Analysts polled by Reuters had estimated the full commercialized shortage would widen to $1.56 cardinal successful March, up from a revised $1.41 cardinal successful February.

Trump's tariff threats had pushed Canadian firms to beforehand supplies southbound of the border, boosting commercialized surpluses successful December and January. But arsenic the tariffs took hold, shipments to the U.S. person squeezed.

The U.S. is Canada's biggest trading spouse and Trump's tariffs person wounded trade, investments and jobs connected some sides of the border.

Prime Minister Mark Carney volition beryllium gathering Trump connected Tuesday to commencement talks connected a broad commercialized and information deal, which experts person said could yet pb to reducing the load of tariffs connected Canada.

Exports autumn for 2nd period successful a row

Canada's wide exports for March sat at $69.9 billion, down from $70.04 cardinal successful February, led by the U.S. This was the 2nd period successful a enactment wherever exports fell.

"Despite the 2 consecutive monthly declines, export levels remained comparatively precocious successful March, posting a 10.2 per cent increase compared with the aforesaid period a twelvemonth earlier," Statistics Canada said, adding that little prices chiefly led to the drop.

In measurement terms, exports were up 1.8 per cent in March, the agency said. However, imports fell successful some worth and measurement terms.

They dropped for the archetypal clip successful 5 months, with the largest contributors being metallic and non-metallic mineral products (by 15.8 per cent) and vigor products (by 18.8 per cent).

In measurement terms, full imports edged down 0.1 per cent in March.

Imports successful March were astatine $70.40 billion, down from $71.44 billion.