In February, Canada’s merchandise trade activity increased sharply, with imports rising 8.4% and exports increasing 6.4%. As a result, Canada’s merchandise trade deficit with the world widened from $4.2 billion in January to $5.7 billion in February, the largest deficit since August 2025, reported Statistics Canada on Thursday.
Exchanges of gold were influential in the merchandise trade results in February. Excluding unwrought gold, silver, and platinum group metals, and their alloys—a product group largely composed of unwrought gold—imports rose 5.8%, while exports were up 5.5%, it said.
Total imports surged 8.4% to reach a record $72.1 billion in February. All product sections but one increased in February. In real (or volume) terms, total imports rose 7.1%, said the federal agency.
Following a decline of 5.2% in January, total exports rose 6.4% in February to reach $66.3 billion, the highest level since March 2025. In February 2026, increases were observed in 9 of the 11 product sections. In real (or volume) terms, total exports increased 4.8%, added Statistics Canada.
Statistics Canada said imports from the United States rose sharply by 13.6% in February, reaching their highest level since March 2025. Many product categories contributed to the rise in February, with higher imports of gold and passenger cars and light trucks leading the increase. Meanwhile, exports to the United States were up 4.4% in February, in large part because of higher exports of passenger cars and light trucks. As a result, Canada’s trade surplus with the United States narrowed from $4.9 billion in January to $1.7 billion in February, the smallest surplus with the United States since May 2020.
Exports to countries other than the United States rose 10.5% in February to reach an all-time high of $22.3 billion. Higher exports to the United Kingdom (gold), Australia (gold) and China (various products) contributed the most to the growth.
Imports from countries other than the United States increased 1.6% in February to also reach a record high ($29.7 billion). Higher imports from Australia (gold) and the Netherlands (pharmaceutical products) were partially offset by lower imports from Peru (gold ore) and China (machinery).
Canada’s trade deficit with countries other than the United States narrowed from $9.1 billion in January to $7.5 billion in February.
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.
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