- Prior was -1.30B
- Exports 62.48B vs 65.55B prior
- Imports 66.13B vs 66.85B prior
Canada’s merchandise exports decreased 4.7%, while imports were down 1.1%. The 4.7% decline is the largest percentage decline since April 2025. Exports of motor vehicles and parts fell 21.2% to $5.4 billion in January, the lowest level since September 2021. Changes in the models produced resulted in prolonged seasonal production
stoppages in January, which strongly affected exports of passenger cars
and light trucks so there should be some rebound ahead.
There was also a slowdown in gold exports but that’s a lumpy category and also doesn’t reflect any kind of change in the economy.
For full-year 2025, Canada recorded a merchandise trade deficit of C$31.3 billion, the largest since 2020 and a sharp widening from the C$7.2 billion deficit posted in 2024. Goods exports to the United States fell 5.8 percent on the year while imports from the U.S. dropped 2.9 percent, shrinking the bilateral surplus with the U.S. to C$81.6 billion from C$101.3 billion in 2024.
Separately:
- Wholesale trade -1.0% vs -0.6% expected (+1.8% prior)
- Building permits +4.9% vs -1.3% expected (+6.1% prior)
With weak trade and wholesale data, Canada is off to a poor start to the year.
