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Canada's trade surplus widens to more than four-year high in September

Kitco Media
By Reuters
Published:
Updated:
Reuters
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OTTAWA, Nov 4 (Reuters) - Canada posted a trade surplus of C$5.35 billion ($3.83 billion) ‌in September, highest since May 2022, data showed on Wednesday, helped by gold and higher energy exports primarily to the United States.

Higher shipments of these two categories south of the border increased exports ​to the US by 0.7% in September, widening Canada's trade surplus with its ​biggest trading partner to C$12.3 billion, from C$12.1 in August, Statistics Canada ⁠said.

This took Canada's share of exports to the US past 70% for the first ​time thirteen months.

Excluding gold and energy, exports in September dropped 5.6% as a set of ​new tariffs imposed by President Donald Trump hurt Canadian exports. 

In volume terms, exports were down 4%.

Analysts polled by Reuters had forecast a trade surplus of C$4.10 billion in September, slightly down from an upwardly ​C$4.95 billion in August.

The monthly goods trade number is an important indicator of how ​Canadian exporters are faring and adapting after months of US tariffs. It also shows how the war ‌in ⁠Iran have helped Canadian export revenues due to higher crude oil and product prices.

Exports of metal and non-metallic mineral products increased 8.6% in September, led by exports of unwrought gold which surged 16.8% and contributed the most to the monthly gain. Exports of energy ​products jumped by 8.2%.

StatsCan ​said that many ⁠export categories such as consumer goods, electronic and electrical equipment and parts and industrial machinery showed significant decreases as these were hit ​by Trump's new tariffs.

Trump, whose Republican party lost control of both ​the chambers ⁠of Congress in Tuesday's mid-term elections, slapped a set of new tariffs on Canadian exports in September after trade talks collapsed.

However, this week both the countries indicated that talks for ⁠a renewed ​trade deal have intensified.

Total imports dropped 0.3% in September ​led by motor vehicle and parts and consumer goods.

Exports to countries other than the United States fell 1.1% ​in September while imports dropped 1.4%, StatsCan said.

Reporting by Promit Mukherjee; Editing by Dale Smith

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