Canada's merchandise trade surplus expanded to a four-year high in May, reaching C$4.2 billion, up from C$3.4 billion in April. This represents the third consecutive month of trade surpluses for the country.
Total exports increased by 0.9% in May, hitting a record C$77.1 billion. This is the fourth consecutive monthly rise, with exports growing 22% over the past four months.
A key driver of this growth was the 50.7% surge in exports of unwrought aluminum and aluminum alloys, reaching C$1.2 billion. These exports were mainly sent to the Netherlands, Italy, and Greece.
Exports to the United States rose by 1.5% in May, marking the fourth consecutive monthly increase. This caused Canada's trade surplus with the U.S. to widen from C$10.3 billion in April to C$11.6 billion in May, the largest since January 2025.
Imports slightly decreased by 0.2% in May, following a record high in April. Notably, imports of metal and non-metallic mineral products dropped by 18.2%, driven by a 33% decline in unwrought gold, silver, platinum group metals, and their alloys.
Economist Jasleen Trehan of the Business Data Lab and Canadian Chamber of Commerce commented, "With the latest merchandise trade numbers, Canada’s export story is becoming more balanced."
Part of the export increase is attributed to higher prices for resources like oil amid the Iran war, which has triggered disruptions across global supply chains for essential materials and resources.
Overall, these trends indicate a strengthening Canadian economy, with exports playing a critical role in driving economic growth.