Canada’s latest international merchandise trade data was released by Statistics Canada, and the results offered positive news for the Canadian economy. Exports climbed to a record high in April, helping push Canada’s trade surplus well above March levels. The ongoing conflict in the Middle East continued to play a key role, keeping energy prices elevated and global demand for Canadian oil and natural gas strong. The data also showed continued progress on the US trade front, despite the backdrop of US tariffs.

• Canada’s trade surplus expanded to $2.72 billion in April, up from $1.75 billion in March. This marked a continued turnaround after Canada swung back to a surplus in March for the first time in six months.
• Total exports climbed 1.6% to $75.2 billion in April, the highest level recorded. Energy exports led the way, rising 9.7% to $19.9 billion, as the ongoing Middle East conflict kept global oil supply tight and prices higher.
• Exports to the US rose for a third straight month, with crude oil, passenger cars and light trucks leading the increase. Canada’s trade surplus with the US reached $9.5 billion, its highest level since February 2025, before tariffs were first imposed.
• Not all sectors shared in the gains.  Exports of metal and non-metallic mineral products fell 17.5% over the period, as a previous surge in gold and silver shipments steadied.

Canada’s record export performance reflects its ability to capitalize on elevated global energy demand, even amid ongoing US tariff pressures. The expanded bilateral surplus with the US is also an encouraging sign. The Bank of Canada, which makes its next interest rate decision today, will weigh this trade strength against ongoing inflation pressures as it considers its next move.  

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