Canada's merchandise trade deficit with the rest of the world narrowed from a record $7.6 billion in April to $5.9 billion in May, as exports rose and imports fell, according to data released by Statistics Canada on Thursday.
Merchandise exports rose 1.1% in May, marking the first increase in four months. The increase was driven primarily by a 15.1% jump in exports of non-metallic mineral and metal products, particularly unprocessed gold. Exports of unprocessed gold, silver and platinum group metals surged 30.1% to a record $5.9 billion, largely driven by higher shipments of physical gold to the United Kingdom.
Meanwhile, imports fell 1.6%, marking the third consecutive monthly decline. The decline was driven by a 16.8% drop in imports of non-metallic mineral and metal products, mainly due to a 43.2% decline in imports of unprocessed gold, silver and platinum group metals.
Exports to the United States fell 0.9% in May, marking the fourth consecutive month of declines. This trend coincided with the implementation of new tariffs by the US on Canadian goods. Canada’s share of exports to the US was 68.3% in May, among the lowest rates on record compared to a monthly average of 75.9% in 2024.
In contrast, exports to countries other than the United States rose 5.7% to a record high, driven by increased shipments to the United Kingdom, Singapore and Italy. This increase was partially offset by a decline in exports to China.
The merchandise trade surplus with the United States increased slightly from $3.1 billion in April to $3.2 billion in May, while the trade deficit with other countries narrowed from $10.7 billion to $9.1 billion.
In the energy sector, energy products exports fell 5.6% in May, with declines across all subcategories. Crude oil exports fell 4.0% due to lower prices and volumes.
Exports of consumer goods increased by 2.6%, driven by a surge in meat products to Japan and a recovery in prepared and packaged seafood products. However, consumer goods exports remained 18.5% lower than their peak reached in January.
When international trade in goods and services is combined, Canada's total trade deficit with the world narrowed from $8.0 billion in April to $6.6 billion in May.
