Canada’s merchandise trade deficit widened in January as exports fell 4.7 percent. Imports also edged lower, falling 1.1 percent. The gap pushed the trade deficit with the world to $3.6 billion, up from $1.3 billion in December.
The largest decline came from motor vehicles and parts, which fell 21.2 percent to $5.4 billion, the lowest level since September 2021.
Exports of passenger cars and light trucks dropped 32.5 percent.
Shipments of metal and non-metallic mineral products also fell, declining 8.0 percent due to lower exports of unwrought gold to the United Kingdom.
Aircraft and transportation equipment exports decreased 16.0 percent.
Energy products were one of the few areas showing growth. Exports of natural gas rose 23.7 percent as extreme winter weather in parts of the United States increased demand. Crude oil exports also rose slightly, marking a third consecutive monthly increase.
Imports declined 1.1 percent overall. Motor vehicle and parts imports fell 4.5 percent, mainly because lower domestic vehicle production reduced demand for engines and components.
Imports of electronic and electrical equipment declined 3.6 percent because of fewer smartphone shipments from China and the United States.
Imports increased due to shipments from China linked to liquefied natural gas infrastructure projects in British Columbia.
The trade surplus with the United States narrowed slightly in January. Exports to the United States fell 3.8 percent while imports declined 3.4 percent, reducing the surplus from $5.7 billion to $5.4 billion.
At the same time, Canada’s trade deficit with countries other than the United States widened. Exports fell 6.5 percent, while imports rose 2.1 percent. The deficit increased from $7.0 billion in December to $9.0 billion.
Including trade in services, Canada’s total exports fell 3.9 percent to $82.3 billion in January, while imports declined 0.4 percent to $86.0 billion. The overall trade deficit widened to $3.8 billion.