Canada’s Merchandise Trade Deficit Hits Record High in April 2025

In April 2025, Canada’s merchandise exports decreased by 10.8% to $60.4 billion and imports declined 3.5% to $67.6 billion, according to Statistics Canada. The merchandise trade deficit widened from $2.3 billion in March to $7.1 billion in April, which Statistics Canada reported as the largest deficit on record.

Statistics Canada reported that exports fell in 10 out of 11 product sections in April. Exports of motor vehicles and parts posted the largest decrease, falling 17.4%, mainly due to a 22.9% decline in passenger cars and light trucks. The agency attributed this reduction to new tariffs imposed by the United States on Canadian motor vehicles at the beginning of April. Canadian manufacturers reduced production in response.

Exports of consumer goods dropped 15.4% to $7.0 billion in April, with declines in most product groups, especially bread, chocolate, frozen foods, pharmaceuticals, and meat products. Energy exports declined 7.9%, with crude oil exports falling 11.7%, primarily because of lower prices, reduced demand, and a temporary pipeline shutdown in the northern United States, according to Statistics Canada. Other notable decreases included industrial machinery, equipment and parts (down 22.5%), metal and non-metallic mineral products (down 8.8%), and forestry products and building materials (down 18.5%).

Statistics Canada reported that total imports declined 3.5% in April. Imports of motor vehicles and parts fell 17.7% after posting increases in previous months and reaching a record high in March. This decrease was linked to Canadian tariffs enacted in response to U.S. actions. Other categories also saw declines: imports of industrial machinery, equipment and parts were down 9.5%, consumer goods dropped 4.2%, and electronic and electrical equipment and parts fell 5.5%. Statistics Canada noted that a strong increase in imports of unwrought gold, silver, and platinum group metals, which rose nearly tenfold to $2.7 billion, partially offset the overall decline in imports.

In trade with the United States, Statistics Canada reported that exports declined by 15.7% and imports dropped 10.8% in April, both marking the third consecutive monthly decrease. Canada’s merchandise trade surplus with the United States narrowed to $3.6 billion, its lowest level since December 2020.

Exports to countries other than the United States increased by 2.9% in April. Imports from these countries rose 8.3% to a record $29.0 billion. Total merchandise trade with non-U.S. partners reached $47.3 billion, and Canada’s trade deficit with these countries increased from $9.0 billion in March to $10.7 billion in April.

Statistics Canada stated that, due to delays linked to the Canada Border Services Agency’s digital transition, estimates were used for some import figures from November 2024 to April 2025. The agency advised users to expect material revisions to these statistics until the situation stabilizes.

For services, Statistics Canada reported that monthly service exports decreased 0.5% to $17.9 billion, while service imports declined 1.1% to $18.3 billion in April. The total trade deficit in goods and services widened to $7.5 billion in April from $2.7 billion in March. Statistics Canada also noted that March figures for exports and imports were revised downward based on updated data.