Exports Push Surplus Higher in May
Canada’s merchandise trade surplus widened to $4.2 billion in May, reaching its highest level in four years. Statistics Canada said the improvement was driven by exports climbing to a record high.
April Surplus Revised Upward
The May result compares with a $3.4 billion surplus in April. That April figure was revised higher from the initial estimate of $2.7 billion, strengthening the recent picture for Canadian trade.
BMO Sees a Possible Peak
BMO senior economist Robert Kavcic noted that Canada’s trade surpluses can shift quickly because of movements in oil prices. “This is probably the high watermark for now,” he said. “Still, net exports look to add firmly to growth in Q2, another data point that suggests the Canadian economy has snapped out of its two-quarter funk.”
Exports Reach a Record $77.1 Billion
Total exports rose 0.9% in May, marking the fourth consecutive monthly increase. The gain lifted exports to a record $77.1 billion, supported by strong shipments in several categories.
Minerals Lead the Export Gains
Exports of metal ores and non-metallic minerals jumped 16.1%. The increase was supported by stronger sulphur exports and new shipments of gold ores and concentrates to China.
Energy Exports Move Lower
Energy product exports fell 2.0% in May, largely because crude oil exports declined 5.4% on lower volumes. The overall drop was softened by a 55.1% increase in nuclear fuel exports, a 7.4% rise in natural gas and a 4.6% gain in refined petroleum energy products.
Imports Edge Down to $72.9 Billion
Total imports slipped 0.2% in May to $72.9 billion. Lower imports of metal and non-metallic mineral products more than offset gains in other import categories.
Consumer Goods Imports Increase
Imports of consumer goods rose 3.5%. Within that category, miscellaneous goods and supplies increased 10%, boosted by imports of batteries and battery chargers from China.
Volumes Show a Different Picture
In volume terms, total exports were essentially unchanged in May, while imports increased 0.4%. This indicates that part of the trade improvement was tied to price and product mix rather than a broad rise in export volumes.
Surplus With the U.S. Widens
Canada’s trade surplus with the United States increased to $11.6 billion, the largest surplus with its biggest trading partner since January 2025. Exports to the U.S. rose 1.5%, while imports from the U.S. fell 1.4%. In April, Canada’s surplus with the U.S. stood at $10.3 billion.
Deficit With Other Countries Grows
Canada’s trade deficit with countries other than the United States widened to $7.4 billion in May, compared with $6.9 billion in April.
Goods and Services Surplus Also Improves
When trade in both goods and services is included, Canada posted a total trade surplus with the world of $3.8 billion in May. That compares with a $3.2 billion surplus in April.
