Canada Posts First Trade Surplus Since January As Exports Rise

Canada recorded a merchandise trade surplus in September, the first time since January, as exports rebounded sharply while imports declined.

The trade in goods balance shifted from a deficit of $6.4 billion in August to a surplus of $0.2 billion in September, according to Statistics Canada data. Total exports of goods increased 6.3% to $64.2 billion, while total imports of goods decreased 4.1% to $64.1 billion.

When combined with services, Canada's overall trade balance amounted to a surplus of $0.3 billion in September.

The monthly international trade in services surplus remained essentially unchanged from the previous month at $0.2 billion. Imports of services rose 0.8% to $19.8 billion, while exports of services increased 0.7% to $20.0 billion.

Commercial services were the main driver of changes in both imports and exports. Imports of commercial services rose 2.4% to $11.6 billion, primarily due to an increase in financial services. This overall increase was partially offset by decreases in imports of travel services, which fell 1.9% to $4.9 billion, and transportation services, which declined 0.8% to $3.3 billion.

On the export side, commercial services climbed 0.9% to $12.2 billion. Exports of travel services increased 0.7% to $5.8 billion, mostly due to higher spending in Canada by travelers from the United States. Transportation service exports remained essentially unchanged at $1.9 billion.

"There's plenty more hurdles still for Canadian trade to pass, given continued US tariffs and CUSMA renegotiations looming," cautioned CIBC economist Andrew Grantham. "Q3's rebound was partly a result of second quarter trade flows falling lower than the underlying trend due to tariff front running in the first quarter. As a result, it wouldn't be a surprise if export performance weakened again during the fourth quarter, before seeing a more sustainable recovery during 2026."

Source: Investing