Canada's merchandise trade surplus expanded to $4.2 billion in May, up from $3.4 billion in April, marking the largest surplus in four years. This marks the third consecutive month Canada has posted a trade surplus.
Total exports rose by 0.9% in May, reaching a record $77.1 billion. This increase was primarily driven by a 16.1% rise in exports of metal ores and non-metallic mineral products, including a 37% increase in sulphur exports. Imports edged down by 0.2% to $72.9 billion, with a notable 18.2% decline in imports of metal and non-metallic mineral products.
Exports to the United States increased by 1.5% in May, the fourth consecutive monthly gain, while imports from the U.S. fell by 1.4%. Consequently, Canada's trade surplus with the U.S. widened from $10.3 billion in April to $11.6 billion in May, the largest since January 2025.
Economists suggest that while the trade surplus is encouraging, the sustainability of this trend depends on global demand and commodity prices. The recent surge in aluminum exports, particularly to the Netherlands, Italy, and Greece, has been a significant contributor to the surplus.
Overall, the data indicates a positive shift in Canada's trade balance, reflecting strong export performance and a slight reduction in imports.