Canadian imports from the United States increased in October as the overall balance of trade moved from a surplus in September to a slight deficit amid the ongoing trade war and tariffs impacting global economies — including Canada.
Statistics Canada reported Thursday that October 2025 saw a trade deficit of $583 million, compared with a revised surplus of $243 million in September.
A trade deficit happens when a nation imports more than it exports, while a surplus is the opposite result.
“Pockets of Canadian international trade continue to be significantly impacted by tariffs. But broader trade flows continue to show signs of stabilization,” Nathan Janzen, assistant chief economist at Royal Bank of Canada, said in a written statement.
In October, Statistics Canada says imports from the United States increased 5.3 per cent, which marked the first increase in four months as Canada seeks to look beyond the U.S. as its main trading partner.
Canada brought in from the United States more electronics, like smartphones, as well as raw platinum and silver bullion.
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Janzen noted that rising imports can also be a positive sign of business and consumer demand.
“Higher imports are a positive indicator for domestic demand — jumps in imports of electronics and industrial equipment in October are a positive indicator of near-term consumer and business spending,” he said.
Although imports from the U.S. increased in October, exports from Canada to the U.S. fell 3.4 per cent.
This means Canada’s trade surplus with the U.S. was cut nearly in half from $8.4 billion in September to $4.8 billion in October.
Canadian exports rose 15.6 per cent to countries other than the U.S. in October, which was up from 11.8 per cent the month before, Statistics Canada says, especially gold shipped to the United Kingdom and crude oil sent to China.
In October, Prime Minister Mark Carney visited countries in Asia to promote Canada as a reliable trading partner.
September’s overall trade surplus marked the first since the trade war began in 2025, and after U.S. President Donald Trump imposed tariff policies on virtually all countries, including Canada.
Canada’s economic output, measured by GDP, fell 0.3 per cent in October, and Deloitte Canada forecast 2026 to show “slow growth.”
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