Canada posts $5.7 billion merchandise trade deficit for February

Shipping containers are seen at a terminal in Halifax.THE CANADIAN PRESS/Andrew Vaughan

Canada posted a merchandise trade deficit of $5.7 billion, its largest deficit since August last year as imports hit a record high, boosted by shipments of gold.

Statistics Canada said Thursday the result compared with a deficit of $4.2 billion in January as imports rose 8.4 per cent to a record $72.1 billion in February.

Imports of metal and non-metallic mineral products increased 45.6 per cent in February as imports of unwrought gold, silver, and platinum group metals, and their alloys more than doubled.

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Meanwhile, imports of motor vehicles and parts also rose 5.9 per cent in February as imports of motor vehicle engines and motor vehicle parts gained 7.5 per cent, coinciding with a rebound in motor vehicle production in Canada.

Energy product imports added 20.1 per cent as imports of crude oil and bitumen rose 35.3 per cent, mainly on higher shipments from the United States. Higher imports of aviation fuel from the United States helped push imports of refined petroleum energy products up 31.0 per cent.

On the flip side, total exports rose 6.4 per cent to $66.3 billion, the highest level since March 2025, as exports of motor vehicles and parts rose 24.2 per cent following prolonged seasonal production stoppages related to model change retooling and production line maintenance.

Exports of metal and non-metallic mineral products climbed 11.2 per cent higher as exports of unwrought gold, silver, and platinum group metals, and their alloys rose 14.2 per cent.

Statistics Canada said that excluding unwrought gold, silver, and platinum group metals, and their alloys, imports rose 5.8 per cent, while exports gained 5.5 per cent.

“Net trade looks to be a drag on GDP during Q1, although the surge in imports that is responsible for that is likely also a reflection of restocking within the economy following the drawdown seen at the end of 2025,” CIBC senior economist Andrew Grantham wrote in a report.

“Looking forward, the nominal trade deficit should narrow due to higher energy prices, with the hope that some further improvement in volume terms can also be seen.”

In volume terms, total imports rose 7.1 per cent in February, while exports increased 4.8 per cent.

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In a separate report, Statistics Canada said the country’s posted a trade in services surplus of $400 million in February as exports of exports increased 1.5 per cent to $20.3 billion and imports of services fell 0.7 per cent to $19.9 billion.

When international trade in goods and services are combined, Canada’s total trade deficit with the world was $5.3 billion in February compared with $4.2 billion in January.

This report by The Canadian Press was first published April 2, 2026.