Canada’s imports outpaced the growth of exports in October as the country posted a merchandise trade deficit of $583 million for the month.
Statistics Canada said in a report Thursday the result compared with a surplus of $243 million in September.
Imports for October rose 3.4% to $66.2 billion as imports of electronic and electrical equipment and parts gained 10.2%.
Imports of metal and non-metallic mineral products were up 9.5%, while industrial machinery, equipment and parts climbed 5.7%.
Total exports increased 2.1% in October to $65.6 billion as exports of metal and non-metallic mineral products increased 27.3% to a record high. Exports of motor vehicles and parts rose 4.1%.
In volume terms, total imports rose 2.6%, while total exports fell 0.4%.
TD Bank economist Marc Ercolao said the bank continues to believe that the peak negative impacts from tariffs are in the rear-view mirror especially as consumers and businesses adapt to the new normal.
“The path forward is still subject to significant risk, notably the upcoming and complex review of the USMCA agreement,” Ercolao wrote in a report.
“The U.S. Supreme Court is also set to rule, possibly as early as tomorrow, on whether the U.S. administration’s use of IEEPA tariffs is lawful. The jury is out on what the decision will be, but it may have implications for upcoming negotiations.”
Canada’s trade surplus with the U.S. was $4.8 billion in October compared with $8.4 billion in September as imports from the U.S. rose 5.3%. Canadian exports to the U.S. fell 3.4%.
Meanwhile, Canada’s trade deficit with countries other than the U.S. narrowed to $5.4 billion in October compared with $8.1 billion in September.
Exports to countries other than the U.S. rose 15.6% to reach a record high in October, while imports from countries other than the U.S. edged up 0.6%.
In a separate report, Statistics Canada said the country’s international trade in services surplus increased to $500 million in October compared with $400 million in September as imports of services fell 1.2% to $19.6 billion and exports of services edged down 0.4% to $20.1 billion.
When international trade in goods and services are combined, the agency said Canada’s total trade balance with the world was a deficit of $59 million in October compared with a surplus of $607 million in September.