Across the G20, merchandise trade rose in the first quarter, according to new data from the Organization for Economic Cooperation and Development (OECD).
In the face of a looming trade war, merchandise trade overall rose as total imports were up by 3.1% and exports rose by 2%, compared with the previous quarter.
“The rise in exports is mostly attributed to the European Union, while imports were driven by the U.S.,” it said, noting that the threat of higher U.S. import tariffs “likely [prompted] importers to accelerate shipments in anticipation of higher future costs.”
Indeed, purchases of industrial supplies and pharmaceuticals drove a 19% surge in U.S. imports, the OECD said.
For Canada, exports rose by 4.1% in the first quarter, driven by “higher sales of motor vehicles and energy products, particularly crude oil,” the group noted. Imports were also up by 1.9%, largely due to higher purchases of auto parts and motor vehicles.
As for the trade in services, the OECD said that “preliminary estimates indicate a mixed picture” for the G20, with exports shrinking by 0.7%, and imports rising by 1%.
In Canada, both imports and exports dropped in the first quarter, by 3.6% and 3.2%, respectively. A drop in travel to the U.S. weighed on Canadian imports, it noted.
For the U.S., imports still grew by 2.5% “despite a sharp decline in travel revenues,” the OECD said — while services exports rose by 0.4%.