Statistics Canada reported a commerce deficit of $1.5 billion for the month, down sharply from a revised $3.1-billion surplus in January. The drop was pushed by a 5.5% lower in exports, which fell throughout 10 of 11 product classes, together with autos, vitality, metals and lumber. In quantity phrases, exports dropped 5.0%.
The retreat in exports follows a 15.9% surge between September and January that was fuelled by Canadian corporations racing to get forward of impending U.S. tariffs, notes CIBC economist Katherine Decide. That “front-running” impact reversed in February, with demand cooling throughout main markets.
“The tariff front-running increase to exports reversed sharply in February,” Decide wrote, noting the drop far exceeded market expectations for a $3.5-billion surplus. “U.S. companies seem to have accrued sufficient stock in prior months, and exports will stay underneath strain consequently.”
Power and auto exports fall as imports proceed to rise
Power exports fell 6.3% in February, with declines throughout crude oil, pure gasoline, coal and diesel—notably to the U.S. and Panama. Auto exports dropped 8.8%, together with a 15.3% slide in passenger automobiles and lightweight vans after January’s two-decade excessive. Practically all had been shipped to the U.S.
Different notable declines included metals (-6.6%), forestry merchandise (-10.8%) and pulp and paper (-13.0%). Plane exports had been the exception, up 29.6% on stronger U.S. jet deliveries.
Imports rose 0.8% for the fifth straight month, led by motor automobiles (+5.8%), equipment (+3.1%) and vitality (+5.2%). In quantity phrases, imports had been flat. StatCan famous the figures embrace estimates as a result of delayed knowledge tied to the CBSA’s new CARM system.
Commerce with the U.S. narrows
Canada’s exports to the USA dropped 3.6%, or $2.1 billion, from January’s document excessive, whereas imports rose 2.5%. That pushed Canada’s commerce surplus with the U.S. all the way down to $10.6 billion from $13.7 billion a month earlier.
Exports to nations aside from the U.S. fell much more sharply, dropping 12.4%, with notable declines to the UK (unwrought gold) and Germany. Imports from non-U.S. nations had been down 2.0%, however Canada’s commerce deficit with these companions widened to a document $12.1 billion.
Outlook stays cautious
Regardless of Canada avoiding reciprocal tariffs on U.S. imports, Decide warned that beforehand introduced U.S. tariffs on key Canadian sectors—equivalent to autos, metal, and lumber—will proceed to weigh on future export demand.
“Furthermore, the next efficient tariff charge on U.S. imports as an entire will work to sluggish U.S. and international development and can weigh on export demand for Canada forward,” she added.
BMO’s Benjamin Reitzes additionally expects the affect of tariffs to accentuate in March and April. Metal, aluminum and auto exports can be instantly affected, whereas different sectors might speed up efforts to fulfill USMCA guidelines to keep away from penalties.
“Count on extraordinarily unstable commerce and different associated knowledge over the following few months as companies regulate/adapt to the tariff regime the U.S. has put in place,” he wrote.
Visited 123 instances, 4 go to(s) at present
worldwide commerce Merchandise commerce steadiness StatCan constructing permits statistics canada commerce conflict
Final modified: April 3, 2025