Canada Reports Record Trade Surplus in May

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Canada's merchandise trade surplus reached $4.2 billion in May, marking the largest surplus in four years, driven by a rise in exports to a record high, according to Statistics Canada.

OTTAWA — Statistics Canada recently announced that Canada’s merchandise trade surplus surged to $4.2 billion in May, marking the highest surplus seen in four years. This figure reflects an increase from the previously reported surplus of $3.4 billion in April, which has been revised up from an initial assessment of $2.7 billion. BMO’s senior economist, Robert Kavcic, commented on the volatility of Canadian trade surpluses, noting that they can fluctuate rapidly due to changing oil prices. He suggested that this might represent the peak for the time being but added that net exports are expected to contribute positively to growth in the second quarter, indicating a robust recovery from the recent economic downturn that lasted two quarters.
In May, total exports rose by 0.9 percent, achieving a record value of $77.1 billion, which marks the fourth consecutive monthly increase. This growth was significantly driven by a 16.1 percent rise in exports of metal ores and non-metallic minerals, attributed to heightened sulphur exports and new shipments of gold ores and concentrates to China. Conversely, exports of energy products saw a decline of two percent, largely due to a 5.4 percent drop in crude oil exports resulting from lower volumes. However, this decrease was counterbalanced to some extent by a notable 55.1 percent surge in nuclear fuel exports, alongside a 7.4 percent increase in natural gas exports and a 4.6 percent rise in refined petroleum energy products.
On the import side, total imports dipped slightly by 0.2 percent in May, settling at $72.9 billion. This decline was primarily due to reduced imports of metal and non-metallic mineral products, which outweighed gains in other sectors. Notably, imports of consumer goods rose by 3.5 percent, driven by a 10 percent increase in miscellaneous goods and supplies, including batteries and battery chargers sourced from China. In terms of volume, total exports remained relatively stable, while imports experienced a modest increase of 0.4 percent.
Regionally, Canada’s trade surplus with the United States expanded to $11.6 billion, marking the largest surplus with its primary trading partner since January 2025. This increase was supported by a 1.5 percent rise in exports to the U.S. and a 1.4 percent decrease in imports from the U.S., compared to a surplus of $10.3 billion recorded in April. Meanwhile, Canada’s trade deficit with nations other than the U.S. was reported at $7.4 billion in May, up from $6.9 billion in April. When combining trade in goods and services, Canada’s total trade surplus with the world was $3.8 billion in May, an increase from $3.2 billion in April.

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