Canada's Merchandise Trade Surplus Expands to $2.7 Billion in April Amid Rising Oil Exports

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Canada's merchandise trade surplus increased to $2.7 billion in April, driven by a rise in oil exports, despite challenges in other sectors due to U.S. tariffs.

OTTAWA — The merchandise trade surplus for Canada saw a notable increase in April, reaching $2.7 billion, as higher oil prices significantly contributed to boosting exports to an unprecedented level, as reported by Statistics Canada. This surplus marks the largest since January 2025 and represents an increase from a surplus of $1.8 billion recorded in March. In April, total exports climbed by 1.6 percent, hitting a record high of $75.2 billion, with energy product exports surging by 9.7 percent. However, this was partially countered by a substantial 17.5 percent decline in the exports of metal and non-metallic mineral products. When excluding energy products and the metal and non-metallic mineral category, exports still showed a commendable rise of 5.1 percent.
On the imports side, there was a slight increase of 0.3 percent in April, bringing the total to a record of $72.4 billion. Notably, imports of basic and industrial chemicals, along with plastic and rubber products, surged by 16.9 percent. In terms of volume, exports increased by three percent, while imports saw a marginal rise of 0.4 percent.
CIBC's senior economist, Andrew Grantham, commented on the recent trade data, indicating that Canadian exports have largely bounced back to levels preceding 2025. He did note, however, that some sectors remain vulnerable, particularly those impacted by U.S. tariffs. Grantham expressed caution, stating that ongoing tariff uncertainties linked to the renegotiation of the Canada-United States-Mexico Agreement (CUSMA) may limit further growth in the near future. He suggested that while net trade could positively contribute to the second quarter's GDP, this trend might not sustain into the latter half of the year if trade uncertainties continue.
In related developments, Canada-U.S. Trade Minister Dominic LeBlanc was in Washington last week for discussions regarding the continental trade agreement. He met with U.S. Trade Representative Jamieson Greer, advocating for a 16-year extension of the trade pact. LeBlanc shared specific proposals and addressed concerns raised by the U.S.
In terms of trade with the U.S., Canada recorded a merchandise trade surplus of $9.5 billion in April, a rise from $7.8 billion in March. This was attributed to a 4.8 percent increase in exports to the U.S., alongside a 1.6 percent rise in imports from the U.S. Conversely, Canada faced a trade deficit of $6.8 billion with countries other than the U.S. in April, compared to $6 billion in March.
Additional statistics from Statistics Canada indicated that the country’s surplus in international trade in services fell to $100 million in April, down from $500 million in March. This decline was marked by a 0.9 percent drop in service exports, totaling $20.6 billion, while service imports rose by 1.1 percent to $20.5 billion. When combining goods and services, Canada achieved a total trade surplus of $2.8 billion in April, an increase from $2.3 billion in March.

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