Canada’s merchandise trade deficit narrowed to $506 million in March from $1.4 billion in February as exports fell -0.2% MoM and imports dropped -1.5% MoM.

• Exports to the US declined -6.6% MoM amid new tariffs, while exports to non-US countries surged 24.8% MoM.
• Consumer goods exports fell -4.2% MoM, led by a -10.8% drop in meat products and -7.0% in pharmaceuticals.
• Energy exports declined -2.2% MoM, with nuclear fuel down -54.5% and natural gas down -13.7%.
• Motor vehicle and parts exports rebounded 7.7% MoM after a sharp February drop, with passenger cars/light trucks up 11.8%.
• Imports fell for the first time since September 2024, led by declines in energy (-18.8% MoM) and metals/minerals (-15.8% MoM); imports from the US fell -2.9% MoM.