Canada Reports Largest-Ever Merchandise Trade Deficit in April 2025

Canada’s merchandise exports fell 10.8% to $60.4 billion in April 2025, while imports declined 3.5% to $67.6 billion, according to Statistics Canada. This led to a merchandise trade deficit of $7.1 billion, which the agency stated is the largest monthly deficit on record.

Statistics Canada reported that recent tariffs between Canada and the United States contributed to sharp declines in both exports and imports, with motor vehicles and related goods particularly affected. Trade figures such as these can indicate impacts on industries and the broader economic situation affecting local residents and businesses.

April marked the third consecutive month that exports declined, with the latest drop being the largest percentage decrease in five years, Statistics Canada stated. Exports to the United States fell 15.7% after new U.S. tariffs were imposed, especially on Canadian-made motor vehicles. The agency reported exports of motor vehicles and parts fell by 17.4%, mainly because of a 22.9% decrease in passenger cars and light trucks, as Canadian manufacturers adjusted production in response to the tariffs.

Exports of consumer goods decreased 15.4% to $7.0 billion, the lowest value since December 2023. Statistics Canada noted the largest reduction was in food products such as bread, chocolate, and frozen foods. There were also notable declines in miscellaneous goods and supplies, pharmaceuticals, and meat products, most of which were sent to the United States. Energy exports dropped 7.9%, led by an 11.7% decline in crude oil, which Statistics Canada attributed to lower prices and a temporary pipeline shutdown in the northern United States. Other export categories with significant decreases included industrial machinery, equipment and parts (down 22.5%), metal and non-metallic mineral products (down 8.8%), and forestry products and related materials (down 18.5%).

Imports of goods saw strong decreases in several categories. Imports of motor vehicles and parts fell 17.7%, industrial machinery, equipment and parts decreased 9.5%, consumer goods declined 4.2%, and imports of electronic and electrical equipment and parts dropped 5.5%, according to Statistics Canada. The agency reported that these declines were partly offset by a sharp increase in imports of unwrought gold, silver, and platinum group metals, which rose almost tenfold to $2.7 billion in April. Most of these imports came from countries other than the United States.

Trade with the United States reflected these shifts. Exports to the U.S. dropped 15.7% and imports from the U.S. fell 10.8% in April, Statistics Canada reported. The merchandise trade surplus with the United States narrowed to $3.6 billion, the smallest since December 2020. In contrast, exports to countries other than the United States rose 2.9%, and imports from these countries reached a record $29.0 billion, an increase of 8.3%. The trade deficit with non-U.S. countries widened from $9.0 billion in March to $10.7 billion in April.

Statistics Canada advised caution when interpreting the recent import figures due to data delays and estimates linked to the Canada Border Services Agency’s Assessment and Revenue Management (CARM) digital initiative. These issues have affected data completeness between November 2024 and April 2025. Revisions to these figures are expected as more information becomes available, Statistics Canada said.