Canada Faces Steep Climb in International Trade Deficit

Canada’s trade deficit reached C$2.2 billion in November, as metal and nonmetallic exports plummeted dramatically, according to Statistics Canada data released Thursday. The downturn was compounded by a 43-day U.S. government shutdown, which disrupted trade data collation.

Aside from a minor surplus in September, Canada's trade balance has been negative largely due to U.S. tariffs. These tariffs have hit sectors such as steel, automotive, and lumber, correlating with President Trump's tariff sanctions.

Exports to the U.S. dropped less than imports, widening Canada’s surplus with the U.S. to C$6.6 billion. Meanwhile, Canada's trade deficit with non-U.S. countries expanded to C$8.8 billion as exports decreased and imports rose, led by gains from China and Germany.