Canada’s merchandise trade balance swung to a deficit in October as imports rose faster than exports, reflecting stronger inbound shipments of electronics, machinery and precious metals, Statistics Canada reported Tuesday.
Merchandise imports increased 3.4 per cent in October, while exports were up 2.1 per cent. As a result, Canada moved from a small trade surplus of $243 million in September to a deficit of $583 million in October.
Import growth drives shift in balance
The increase in imports followed a 4.3 per cent decline in September and marked a broad-based rebound. Statistics Canada said gains were recorded in eight of the 11 major product sections. In real, or volume, terms, total imports rose 2.6 per cent in October.
Electronic and electrical equipment and parts led the monthly increase, rising 10.2 per cent. All product groups within the category advanced. Imports of computers and computer peripherals climbed 32.2 per cent to reach a record high, driven mainly by higher imports of processing units from Ireland. Imports of communication, and audio and video equipment increased 5.1 per cent, supported by stronger shipments of smartphones from China and the United States.
Imports of metal and non-metallic mineral products also rebounded sharply, rising 9.5 per cent in October after a 27.9 per cent drop in September. The increase was largely attributable to higher imports of unwrought gold, silver, and platinum group metals, and their alloys, which rose 55.3 per cent. Statistics Canada said volatility in this product group in 2025 has been driven primarily by unwrought gold, while higher imports of unwrought platinum and silver bullion from the United States accounted for much of the October increase.
Industrial machinery, equipment and parts imports increased 5.7 per cent. Statistics Canada said higher imports of other general-purpose machinery and equipment, logging, construction, mining and oil and gas field machinery and equipment, and parts of industrial machinery and equipment were significant contributors to the gain.
Partially offsetting the overall increase was a 7.5 per cent decline in imports of basic and industrial chemical, plastic and rubber products, which fell to their lowest level since July 2023. Imports of basic chemicals dropped 23.5 per cent, mainly because of lower imports of active pharmaceutical ingredients used in the production of medicaments. Imports of lubricants and other petroleum refinery products declined 17.6 per cent, largely reflecting lower imports of crude oil diluents from the United States.
Gold supports export gains
Exports rose 2.1 per cent in October, following a 6.7 per cent increase in September. Despite the overall gain, exports fell in six of the 11 product sections. Statistics Canada said that, as in September, exports of unwrought gold, silver, and platinum group metals, and their alloys contributed the most to growth. Excluding this product group, total exports declined 2.5 per cent.
Higher prices also supported the monthly increase in exports. In real, or volume, terms, total exports decreased 0.4 per cent in October.
Metal and non-metallic mineral products exports rose 27.3 per cent, following a 25.0 per cent increase in September, and reached another record high. Exports of unwrought gold, silver, and platinum group metals, and their alloys—largely composed of unwrought gold—increased 47.4 per cent, driven by higher gold exports to the United Kingdom. Compared with October 2024, exports of this product group more than doubled. Statistics Canada said higher gold prices accounted for much of the growth, while volumes also increased, rising by nearly 40 per cent year over year in October.
Exports of motor vehicles and parts rose 4.1 per cent, with all subcategories posting gains. Higher exports of passenger cars and light trucks increased 3.2 per cent, while exports of medium and heavy trucks, buses, and other motor vehicles surged 24.7 per cent. Statistics Canada noted that the increase in medium and heavy vehicles coincided with the announcement of new U.S. import tariffs that came into effect on Nov. 1, 2025.
Offsetting some of the export growth were lower exports of energy products, which fell 8.4 per cent. The decline was mainly due to a 13.5 per cent drop in exports of crude oil and bitumen, reflecting lower volumes and prices. Statistics Canada said the volume decline coincided with refinery shutdowns in the United States, while prices fell amid global oversupply.
U.S. surplus narrows
Canada’s merchandise trade surplus with the United States narrowed significantly in October. After three consecutive monthly declines, imports from the United States increased 5.3 per cent, while exports to the U.S. fell 3.4 per cent, partly because of lower exports of aircraft and unwrought gold.
Statistics Canada said exports to the United States were down 4.1 per cent in the first 10 months of 2025 compared with the same period in 2024. The trade surplus with the United States declined from $8.4 billion in September to $4.8 billion in October.
Non-U.S. trade hits record exports
Exports to countries other than the United States rose 15.6 per cent in October, following an 11.8 per cent increase in September, and reached a record high. Statistics Canada said higher exports to the United Kingdom, primarily gold, and to China, mainly crude oil, contributed most to the increase.
Imports from countries other than the United States edged up 0.6 per cent. Higher imports from China, driven by smartphones, and from Peru, largely gold, were partly offset by lower imports from Belgium, mainly pharmaceutical products, and Australia, primarily mineral products.
Canada’s trade deficit with countries other than the United States narrowed from $8.1 billion in September to $5.4 billion in October, the lowest level since January 2021.
Revisions and services trade
Statistics Canada revised September merchandise trade figures, lowering imports to $64.0 billion from the previously reported $64.1 billion and raising exports to $64.3 billion from $64.2 billion.
In services trade, exports fell 0.4 per cent in October to $20.1 billion, while imports of services declined 1.2 per cent to $19.6 billion.
When goods and services are combined, total exports rose 1.5 per cent to $85.7 billion in October, while imports increased 2.3 per cent to $85.7 billion. Canada’s overall trade balance with the world shifted from a surplus of $607 million in September to a small deficit of $59 million in October.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
About Us
Canada’s Entrepreneur is the number one community media platform in Canada for entrepreneurs and business owners. Established in 2016, our podcast team has interviewed over 800 Canadian entrepreneurs from coast-to-coast. With hosts in each province, entrepreneurs have a local and national format to tell their stories, talk about their journey and provide inspiration for anyone starting their entrepreneurial journey and well- established founders.
The commitment to a grass roots approach has built a loyal audience on all our social channels and YouTube – 500,000+ lifetime YouTube views, 250,000 + audio downloads, 50,000 + average monthly social impressions, 15,000 + engaged social followers and 120,000 newsletter subscribers. Canada’s Entrepreneur is proud to provide a local, national and international presence for Canadian entrepreneurs to build their brand and tell their story
