New data shows that both imports and exports with us will collapse as Canada expands its business relationships with other countries.
Canada’s trade with the US fell in March, but the surge in exports to other countries helped compensate for the downward shift.
Exports to the United States fell 6.6% that month, while imports from the United States fell 2.9% amid growing public dissatisfaction with longtime Canadian allies and top trading partners, according to data released Tuesday by Statistics Canada.
Total exports fell 0.2% in March, mainly at low prices, while imports fell 1.5%.
Canada’s trade deficit has shrunk from Canadian dollars 1 billion (US$1.4 billion) in February to Canadian dollars 367 million (US$506 million) in March. The trade surplus with the US fell to $6.1 billion (US$8.4 billion).
“This decline was almost entirely offset by a significant increase in exports to countries other than the US,” the agency said, highlighting a 24.8% spike in overseas shipments. Canada has increased its exports of gold to the UK, crude oil to the Netherlands and various commodities to Germany.
Among the US tariffs targeting the automotive sector, exports of automobiles and parts also increased. Drugs and uranium exports to the US and pork exports to the Asian market have declined. Natural gas exports also declined.
Steel exports have declined, while aluminum exports have risen for the fourth consecutive month. Steel imports have declined, but aluminum imports have increased as both products face US tariffs of 25%.
Analysts warn that the full impact of tariffs has not yet been seen. Canada should support increasing trade to increase headwinds as the worst of the trade dispute is expected to take place over the coming quarter,” TD Economics analyst Mark Elcorao said in a research note.
Kearney and Trump meet
Trade data was released on the day Canadian Prime Minister Mark Carney met with President Donald Trump in Washington, DC, and discussed the tension between trade and security.
Carney won last week’s election with a pledge to stand up to Trump and his first American agenda. He said the tension between the two countries will never be the same again.
The US imposed a wide range of tariffs on Canadian goods at the beginning of March, and later announced some reductions and exemptions, even if tariffs on cars, aluminum, steel and potash were properly placed. Canada fought back on measures.
“When we work together, Canada and the US are the strongest, and that job starts now,” Carney said on social media platform X, which arrived in Washington, DC on Monday night.