In December, Canada’s merchandise exports increased 2.6%, while imports were up 0.6%. As a result, Canada’s merchandise trade deficit with the world narrowed from $2.6 billion in November to $1.3 billion in December, according to a report released Thursday by Statistics Canada.
“A large proportion of import and export transactions are completed in US dollars and must be converted to Canadian dollars to compile monthly trade statistics. All other things being equal, when the Canadian dollar appreciates against the US dollar, monthly trade values expressed in Canadian dollars are lower,” said the federal agency.
“In December, the average value of the Canadian dollar increased 1.3 cents US compared with November. This is the largest monthly increase since January 2025. When expressed in US dollars, Canadian exports increased 4.5% in December, while imports were up 2.4%.”
Following a 2.2% decrease in November, total exports rose 2.6% in December. Despite the increase, declines were observed in 7 of the 11 product sections. As was the case in recent months, exports of metal and non-metallic mineral products (+18.0%) posted the largest monthly variation. Excluding exports of this product section, exports edged down 0.2% in December. In real (or volume) terms, total exports were up 1.4%, it said.
Photo: Tima Miroshnichenko
Statistics Canada said total imports were up 0.6% in December. Overall, gains were observed in 6 of the 11 product sections. In real (or volume) terms, total imports were up 1.4%.
“After falling in the previous two months, exports to the United States increased 1.1% in December. Meanwhile, imports from the United States were up 3.5%. As a result, Canada’s merchandise trade surplus with the United States narrowed from $6.5 billion in November to $5.7 billion in December.
“Exports to countries other than the United States rose 5.8% in December to reach an all-time high. Increased shipments of unwrought gold to the United Kingdom contributed the most to the growth in the month. Imports from countries other than the United States fell 3.0% in December, with widespread decreases observed across various countries. Canada’s trade deficit with countries other than the United States narrowed from $9.0 billion in November to $7.0 billion in December.”
The report said total exports rose 3.9% in the fourth quarter of 2025, a second consecutive quarterly increase. Exports of metal and non-metallic mineral products (+23.4%) were responsible for nearly all of the overall quarterly increase. Excluding this product section, exports were up 0.5%. Exports of energy products (+1.3%) and aircraft and other transportation equipment and parts (+5.8%) also contributed to the increase in the quarter.
“Following a decrease of 2.2% in the third quarter, total imports rose 1.2% in the fourth quarter. Imports of electronic and electrical equipment and parts (+5.7%) and metal ores and non-metallic minerals (+18.4%) posted the largest increases.
“With regard to quarterly results in constant dollars (calculated using 2017 chained dollars), real exports were up 2.1% in the fourth quarter, while real imports edged up 0.3%.”
Marc Ercolao
Marc Ercolao, Economist, TD Economics, said: “This was a solid print for Canadian trade to cap off 2025. However, the details confirm that the recovery in trade since early last year has been volatile and uneven, particularly with product categories like precious metals experiencing substantial month-to-month swings. All told, exports outpaced imports in the fourth quarter, which should act as a tailwind to Q4 real GDP growth.
“The upcoming CUSMA review will be in full focus over the coming months. While the base case is that the agreement remains in place, scenarios involving U.S. withdrawal could expose Canadian exporters to significantly higher tariffs and prolonged policy uncertainty, weighing on business confidence and investment. The pending U.S. Supreme Court ruling on the legality of IEEPA tariffs could also affect potential outcomes.”
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, 2025 and 2026.
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
