Canada recorded smaller-than-expected trade deficit in October

Canada recorded a smaller-than-expected trade deficit of C$583 million ($419 million) in October, when imports increased at a greater pace than exports, official data indicated on Thursday.

Analysts had expected a C$1.36 billion deficit. Statistics Canada revised September's surplus up to C$243 million from an initial C$153 million.

The deficit was the eighth in nine months in 2025, a year when U.S. President Donald Trump imposed tariffs on a raft of imports from Canada and Prime Minister Mark Carney stressed the need for trade diversification.

Exports to the United States in October accounted for 67.3% of all exports, the lowest non-pandemic level since the current method of data calculation was established in 1997.

After falling 4.3% in September, the value of total imports rose 3.4% in October. Imports of electronic and electrical equipment and parts jumped 10.2%, pushed up by record shipments of computers and computer peripherals.

Exports edged up by 2.1% on strength in demand for unwrought

gold, silver, and platinum group metals and their alloys. Excluding this product group, total exports fell 2.5%.

Exports to the United States dipped by 4.1% while imports increased by 5.3%. As a result, Canada's trade surplus with its neighbor fell to C$4.8 billion from C$8.4 billion in September.

Exports to non-U.S. nations jumped by 15.6% to reach a record high, pushed up by shipments of gold to Britain and oil to China.

The release of the data was delayed from the planned December 4 date due to a prolonged U.S. government shutdown. November's data are due to be issued on January 29.

($1=$1.39 Canadian)