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Statistics Canada says the country’s merchandise trade deficit increased to $3.6 billion in January as exports of motor vehicles and parts fell to their lowest level since September 2021.

The result compared with a trade deficit of $1.3 billion in December.

Statistics Canada says total exports fell 4.7% in January to $62.5 billion, the largest percentage decline since April 2025.

The drop came as exports of motor vehicles and parts fell 21.2% to $5.4 billion in January as exports of passenger cars and light trucks plunged 32.5%, mainly due to lower motor vehicle production.

Total imports in January fell 1.1% to $66.1 billion as imports of motor vehicles and parts decreased 4.5%.

In volume terms, total exports fell 5.8%, while imports dropped 2.2%.