Canada's merchandise trade surplus widened to $5.4 billion in September as exports edged higher and imports declined, with increased shipments of crude oil and gold driving the monthly improvement, according to Statistics Canada.

The surplus increased from $5.0 billion in August, as merchandise exports rose 0.2 per cent while imports fell 0.3 per cent. However, the modest gain in exports masked declines across most product categories, while lower vehicle imports contributed to the overall decrease in imports.

The figures point to continued shifts in Canada's international trade, with energy and precious metals supporting export values while automotive supply disruptions and changing demand influenced import activity.

Crude oil and gold drive export gains

Following a 3.2 per cent increase in August, Canada's total merchandise exports edged up 0.2 per cent in September. Despite the monthly gain, exports declined in eight of the 11 product sections tracked by Statistics Canada.

Energy products and metal and non-metallic mineral products recorded the largest increases. Without those two categories, total exports would have fallen 5.6 per cent during the month. In volume terms, which exclude price changes, exports declined 4.0 per cent.

Energy exports increased 8.2 per cent in September, marking a second consecutive monthly gain. However, despite the increases in August and September, energy exports were down 5.0 per cent in the third quarter of 2026.

Crude oil and bitumen exports rose 10.2 per cent, primarily because of higher prices, while natural gas exports increased 32.1 per cent. Those gains were partly offset by a 13.9 per cent decline in refined petroleum energy products, following a record high in August.

Exports of metal and non-metallic mineral products increased 8.6 per cent in September. Unwrought gold, silver and platinum group metals and their alloys, a category largely composed of unwrought gold, rose 16.8 per cent and accounted for the largest contribution to the increase.

Statistics Canada attributed the growth to higher purchases of Canadian-held gold by U.S. residents. The increase was partially offset by lower gold shipments to the United Kingdom.

Several other major export categories recorded declines during the month, including consumer goods, down 7.1 per cent; electronic and electrical equipment and parts, down 13.9 per cent; industrial machinery, equipment and parts, down 9.0 per cent; motor vehicles and parts, down 4.9 per cent; and forestry products and building and packaging materials, down 9.8 per cent.

Statistics Canada noted that several products within those categories had been targeted by new U.S. tariffs and recorded significant increases in August.

Vehicle imports fall for second consecutive month

Total merchandise imports declined 0.3 per cent in September following a 2.2 per cent decrease in August. Although six of the 11 product sections recorded increases, lower imports of motor vehicles and parts represented the largest contributor to the overall decline.

Excluding motor vehicles and parts, imports would have increased 1.5 per cent in September. In volume terms, total imports were down 2.5 per cent.

Imports of motor vehicles and parts fell 9.1 per cent, following a 9.3 per cent decline in August. The decreases followed a record high in July, which coincided with shorter seasonal production stoppages in the United States this year.

Passenger cars and light trucks accounted for the largest portion of the September decline, with imports falling 13.2 per cent. Statistics Canada said supply issues resulted in unplanned production stoppages in the United States, reducing the number of vehicles available for import into Canada.

Imports of motor vehicle engines and parts also declined, falling 5.6 per cent. The decrease coincided with reduced light truck production in Canada and a 7.0 per cent decline in exports of passenger cars and light trucks.

Imports of consumer goods fell 2.9 per cent, primarily because imports of miscellaneous goods and supplies declined 18.3 per cent. Statistics Canada also reported lower imports of battery energy storage systems from China and reduced shipments of jewellery, cut gems and articles of precious metals from India, Hong Kong and Switzerland.

Computer imports reach record high

The decline in overall imports was partly offset by stronger purchases of electronic and electrical equipment and parts, which increased 10.3 per cent in September to reach a record level.

Imports of computers and computer peripherals climbed 29.4 per cent, largely reflecting higher shipments of processing units used in data centres from the United States.

Computer and peripheral imports were up 53.4 per cent during the first nine months of 2026 compared with the same period in 2025.

Imports of communication, audio and video equipment also increased, rising 5.0 per cent in September. Higher shipments of cellphones from China and the United States contributed to the gain.

Trade surplus with U.S. widens

Canadian exports to the United States increased 0.7 per cent in September, marking a second consecutive monthly gain. Higher shipments of crude oil and unwrought gold were the main contributors to the increase.

Imports from the United States rose 0.4 per cent, partly because of higher shipments of processing units. Canada's merchandise trade surplus with the United States widened to $12.3 billion in September from $12.1 billion in August.

Trade with countries other than the United States moved in the opposite direction, with exports declining 1.1 per cent for a second consecutive month after reaching a record high in July. Lower shipments of gold to the United Kingdom, coal and wheat to Japan, and diesel and wheat to Peru contributed to the decrease.

Those declines were partly offset by higher exports of copper, coal and crude oil to South Korea. The share of Canadian exports destined for countries other than the United States decreased to 29.8 per cent in September from 30.1 per cent in August.

Imports from countries other than the United States also fell for a second consecutive month, declining 1.4 per cent. Lower imports from China, Japan and Mexico, primarily involving passenger cars and light trucks, accounted for much of the decrease.

Canada's trade deficit with countries other than the United States narrowed slightly to $7.0 billion from $7.1 billion in August.

Quarterly trade surplus remains unchanged

For the third quarter of 2026, both exports and imports edged up 0.2 per cent, marking the fifth consecutive quarterly increase in exports and the fourth consecutive increase in imports.

Higher exports of aircraft and other transportation equipment and parts, up 15.6 per cent; metal and non-metallic mineral products, up 2.1 per cent; and farm, fishing and intermediate food products, up 3.7 per cent, were partly offset by a 5.0 per cent decline in energy exports.

On the import side, increases in electronic and electrical equipment and parts, up 8.2 per cent, and industrial machinery, equipment and parts, up 3.3 per cent, were partly offset by declines in aircraft and other transportation equipment and parts, down 9.1 per cent, and basic and industrial chemical, plastic and rubber products, down 3.5 per cent.

Canada's quarterly merchandise trade surplus remained essentially unchanged at $11.2 billion.

In real terms, however, exports declined 0.6 per cent in the third quarter, while imports fell 1.6 per cent, based on calculations using 2017 chained dollars.