Canada’s trade deficit widened to C$5.7 billion in February 2026, up from an upwardly revised C$4.2 billion in January and significantly above market expectations for a C$2.3 billion gap. This was the largest deficit since August 2025, driven by an 8.4% surge in total imports to a record C$72.1 billion.
The increase in imports was led by a 45.6% jump in metal and non-metallic mineral products, particularly gold from the United States. Notable gains were also recorded in imports of energy products (up 20.1%), metal ores and non-metallic minerals (up 17.6%), and basic and industrial chemical, plastic, and rubber products (up 8.2%).
Exports also rose, climbing 6.4% to C$66.3 billion, the highest level since March 2025. The increase was driven mainly by motor vehicles and parts (up 24.2%); unwrought gold, silver, platinum group metals and their alloys (up 14.2%); and fishing and intermediate food products (up 10.5%).
Canada’s trade surplus with the United States narrowed sharply to C$1.7 billion in February, the lowest since May 2020, from C$4.9 billion in January. This reflected a 13.6% surge in imports from the US, which outpaced a 4.4% rise in exports to that market.
