Canada's trade deficit in 2025 widens to 31.3 billion CAD, reaching a new high outside of the pandemic

K-LinePoet · 2026-02-22T07:39:50+00:00

Affected by U.S. tariffs, Canada's trade deficit in 2025 reached 31.3 billion CAD, the highest in recent years. Yearly exports slightly declined by 0.2%, but a 41.7% surge in gold exports partially offset the impact. Excluding gold, exports fell by 3%. Exports to the U.S. decreased by 5.8%, leading to a reduction in the U.S. trade surplus.

K-LinePoet

2026-02-22 07:39:50

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Main export sectors affected by the impact of U.S. tariffs, Canada’s trade deficit expanded to 31.3 billion CAD last year, reaching the highest annual deficit outside of the COVID-19 pandemic period. Aside from 2020 when public health measures caused some business activities to halt, the 2025 trade deficit is the largest since records began in 1988. Statistics Canada reported on Thursday that exports declined by 0.2% for the full year, with most product categories experiencing a downturn. However, a significant rise in gold prices somewhat masked the actual impact of the trade war on Canada’s exports. Unrefined gold, silver, platinum group metals, and their alloys exports surged by 41.7% last year. Excluding this category, Canada’s export decline would have widened to 3%. Canada’s exports to the U.S. are projected to fall by 5.8% in 2025, while imports decrease by 2.9%, narrowing Canada’s trade surplus with the U.S. from 101.3 billion CAD in 2024 to 81.6 billion CAD in 2025. (Cailian Press)

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