Canada’s Trade Surplus Hits C$1.8B on 24% Metal, 15.6% Energy Export Gains

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Canada posted a C$1.8 billion trade surplus in March, its first since September 2025, reversing a C$5.1 billion deficit as exports climbed. Metal exports surged 24% to C$15.3 billion and energy shipments rose 15.6% on higher crude oil volumes, while imports fell 1.6%.

1. Trade Surplus Reversal

Canada recorded a C$1.8 billion trade surplus in March, reversing a C$5.1 billion deficit from February and marking the first surplus since September 2025.

2. Surge in Metal and Energy Exports

Exports rose 8.5% to the highest level since January 2025, led by a 24% jump in metal and non-metallic products to C$15.3 billion and a 15.6% increase in energy exports driven by an 18.9% rise in crude oil shipments.

3. Import Contraction

Imports fell 1.6% after a February record, with declines in eight of 11 product categories, notably a 9.3% drop in pharmaceutical imports, resulting in a 2% fall in import volume.

4. Market Reaction

The trade surplus supported a 0.1% gain in the loonie to C$1.3617 per US dollar and contributed to a two-basis-point drop in the two-year government bond yield, though overall export volume edged down 0.3%.

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