The merchandise trade balance moved back into deficit in October as imports rebounded more strongly than exports. Imports rose 3.4% in the month while exports increased 2.1%, shifting the balance from a $243 million surplus in September to a $583 million deficit.
The increase in exports was driven largely by higher prices rather than volumes. In real terms, export volumes fell 0.4%. Excluding unwrought gold, silver, and platinum group metals, total exports declined 2.5%, underscoring the narrow source of October’s gains.
Imports rebounded after a sharp September decline, with strength concentrated in electronics. Imports of computers and computer peripherals rose more than 30%, reaching a record high, mainly because of increased shipments of processing units from Ireland.
Metal and non-metallic mineral products also swung higher. Imports rose 9.5%. Precious metals have been a major source of volatility in Canada’s trade data throughout 2025.
Other import categories weakened. Imports of basic and industrial chemicals, plastics, and rubber products fell 7.5% to their lowest level since July 2023.
On the export side, precious metals again dominated. Exports of unwrought gold and related metals rose 47.4% in October, reaching another record high. Shipments to the United Kingdom accounted for much of the increase.
Motor vehicle exports provided one of the few areas of broader strength. Exports of vehicles and parts rose 4.1%, with gains across all major subcategories. Shipments of medium and heavy trucks increased sharply.
Energy exports declined for a second consecutive month. Exports of crude oil and bitumen fell 13.5% as volumes dropped during U.S. refinery shutdowns and prices weakened amid global oversupply.
Imports from the United States rose 5.3% in October, while exports fell 3.4%. Exports to the United States are down 4.1% over the first 10 months of 2025 compared with the same period last year.
When services are included, Canada’s overall trade position was essentially balanced. Total exports of goods and services rose 1.5% in October, while imports increased 2.3%, leaving a small overall deficit of $59 million.