“Nations rise on the strength of their trade. Those that export thrive;
those that do not fall behind.”

Trade – Exports and Imports

(Part 1 of 2)

Trade — in both goods and services — is one of the most important drivers of a country’s Economic Prosperity. When a nation consistently Exports more than it Imports, it strengthens its currency, expands its industries, creates higher quality jobs, and raises the Standard of Living for its citizens.

Canada participates in the global economy through two major channels:

1. Merchandise Trade, which captures the physical goods crossing our borders.
2. Services Trade, which includes consulting, engineering, IT, finance, education, and other forms of expertise that Canada sells to the world.

Understanding how these two systems work — and how they differ — is essential to understanding Canada’s current economic position.

The data below shows where Canada stands today, where our strengths lie, and where structural vulnerabilities are emerging.

Canada’s Most Recent Trade Snapshot

To understand Canada’s current trade position, it helps to begin with the most recent monthly data. (October 2025 — Business in Vancouver, Canadian Press)

Canada posted a $583 million merchandise Trade Deficit resulting from:

• Imports: $66.2 billion, up 3.4% from the previous month
• Exports: $65.6 billion, up 2.1% from the previous month

This trade snapshot reflects a pattern where Imports are rising faster than Exports, driven by strong domestic demand and weaker external demand.

Where Canada Currently Exports To

Looking beyond the headline numbers, it’s important to understand where Canada’s goods are actually being sold.  (Based on October 2025 reporting from CBC.ca and Thomson Reuters)

1. United States

The U.S. share of total Canadian Exports was 67.3%.  Exports dropped 4.1%, and Imports increased 5.3%. The 67.3% is the lowest share of Exports to the U.S. since 1997.

2. Non‑U.S. Markets

The share of Exports to countries outside the U.S. was 32.7%. The top countries Canada exported to were: United Kingdom, China, Japan, South Korea, European Union (Germany, Netherlands, Belgium, Italy), Mexico.

Where Canada Currently Imports From

Just as export destinations matter, so too does understanding where Canada’s Imports originate. (Based on October 2025 reporting from CBC.ca and Thomson Reuters, with annual import‑share data from UN COMTRADE / Trading Economics)

1. United States

The U.S. accounts for approximately 49% of all Canadian Imports. It dominates Canada’s import profile due to:

• precious metals (platinum, silver)
• electronics and computer equipment
• vehicles and parts
• industrial machinery

2. Non‑U.S. Markets

The remaining ~51% of Canada’s Imports come from non‑U.S. countries.

The top countries Canada imported from were: China, Mexico, Japan, Germany, South Korea, Vietnam, European Union (Germany, Netherlands).

These countries consistently rank among Canada’s top import partners and reflect Canada’s diversified supply chains in electronics, machinery, consumer goods, and manufactured products.

Canada’s Overall Trade Position

Taken together, these patterns shape Canada’s broader trade position.

Canada’s most recent trade data shows a $583 million merchandise trade deficit, reflecting a pattern where Imports are rising faster than Exports.

While the deficit itself is modest, the underlying dynamics matter. Strong domestic demand is driving higher Imports of electronics, machinery, and industrial equipment, while export growth has softened.

This imbalance highlights structural pressures in Canada’s economy, particularly around competitiveness and the ability to expand export capacity in key sectors.

Why These Numbers Matter

These trends are not just statistical details — they reveal deeper structural realities about Canada’s economy.

Canada’s economy is deeply trade dependent.

With Exports and Imports together exceeding $130 billion per month, Canada’s economic health is inseparable from the strength and stability of its trade flows.

The U.S. remains dominant — but less so than before.

The decline to 67.3% of Exports going to the United States marks a meaningful shift in Canada’s trade relationship and signals a gradual diversification away from a single dominant market.

Non‑U.S. markets are becoming more important.

Record shipments to the United Kingdom and increased Exports to China show that Canada is expanding its global reach and reducing its reliance on the U.S. for export growth.

Import patterns reflect strong domestic demand — and highlight vulnerabilities.

Higher Imports of electronics, machinery, and industrial equipment indicate that Canadian households and businesses continue to spend.

At the same time, because Imports make up a large share of Canada’s total trade, this pattern exposes structural weaknesses when export growth does not keep pace.

The trade deficit points to deeper structural pressures.

The $583 million deficit is modest, but the underlying pattern — Imports rising faster than Exports — underscores longstanding competitiveness challenges that Canada must address.

Understanding Canada trade exports and imports is essential to addressing our structural economic pressures.

Link to: Trade – Exports and Imports (Part 2 of 2)

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