Canada’s trade surplus hit $4.2 billion in May, the largest in four years, Statistics Canada said Tuesday. The result followed a revised surplus of $3.4 billion in April, which was adjusted from an initial reading of $2.7 billion.
BMO senior economist Robert Kavcic noted that Canadian trade surpluses can shift quickly with swings 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 hit record driven by metals, energy falls
Total exports rose 0.9% in May, marking the fourth consecutive monthly increase and reaching an all-time high of $77.1 billion. The gain was led by a 16.1% jump in exports of metal ores and non-metallic minerals, boosted by higher sulphur exports and new shipments of gold ores and concentrates to China.
Energy exports, however, fell 2%.
Crude oil shipments dropped 5.4% on lower volumes. That decline was partly offset by a 55.1% surge in nuclear fuel shipments, a 7.4% increase in natural gas and a 4.6% rise in refined petroleum energy products.
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The numbers highlight how Canada’s trade balance remains tied to volatile commodity prices, but the record export level also reflects broader demand for non-energy goods like metals and minerals. Even with the oil decline, overall outbound trade kept growing — a sign that the economy’s trade base is somewhat more diversified than it was a decade ago.
Imports edge lower as consumer goods rise
Total imports slipped 0.2% in May to $72.9 billion. Lower inbound shipments of metal and non-metallic mineral products outweighed gains elsewhere. Consumer goods imports rose 3.5%, driven by a 10% increase in miscellaneous goods and supplies, including batteries and battery chargers from China.
In volume terms, total exports were essentially unchanged, while inbound trade rose 0.4%. The nominal surplus was therefore largely a price effect, not a surge in shipped goods.
Trade surplus with US widens
Canada’s trade surplus with the United States expanded to $11.6 billion in May, the largest since January 2025. Sales to the U.S. rose 1.5% and purchases from the U.S. fell 1.4%. In April, the positive balance had been $10.3 billion.
Canada’s trade deficit with countries other than the U.S. stood at $7.4 billion in May, up from $6.9 billion in April. When combining goods and services, the nation’s total positive balance with the world was $3.8 billion in May, compared with $3.2 billion in April.
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