By Robb M. Stewart
OTTAWA--Canada unexpectedly swung to its first trade surplus with the world in six months as exports were lifted by a spike in energy prices and a surge in gold shipments.
The country for March recorded a merchandise-trade surplus of 1.78 billion Canadian dollars, the equivalent of about US$1.31 billion, Statistics Canada said Tuessday.
Analysts were expecting a narrowed C$2.75 billion deficit for the month following February's C$2.86 billion shortfall.
Canada's longstanding surplus with the U.S. widened for the first time since November, while the deficit with all other trading partners shrank to the smallest since the start of 2021.
The value of goods exports increased to the second-highest level on record, rising 8.5% from the month before to C$72.77 billion, while the value of goods coming into the country slipped 1.6% to C$70.99 billion, the national data agency said.
Energy exports from Canada increased 15.6% to the highest since September 2022, buoyed by a jump in crude oil prices with the escalation of the conflict in Iran. At the same time metal and mineral shipments were up 24% to an all-time high, largely due a unwrought gold and increased shipments to the U.K. even as market prices for the precious metal retreated in March.
Excluding metals and minerals and energy products, and Canadian exports were up a more modest 1.1% for the month. And in volume terms, overall exports edged down 0.3%.
Imports into Canada slipped after reaching a record high in February, led by drops in consumer goods, as well as lower imports of items including clothing, food products and meat. In volume terms, imports fell 2% from the month before.
Exports to the U.S., by far Canada's largest trading partner, were up 8.3% in March to the highest level in a year, led by shipments of crude oil and passenger cars and light trucks. Exports to countries other than the U.S. rose 9.1% and for a second straight month hit a record high.
With imports from the U.S. declining 1.2% for the month, Canada's goods-trade surplus with its neighbor widened to C$7.07 billion from a C$2.86 billion in February, the narrowest since May 2020.
Canada's deficit with countries other than the U.S. narrowed to C$5.29 billion from C$7.97 billion the month before. Imports from non-U.S. countries were down 2.2%, with lower inbound gold shipments from Australia and a decline in light trucks from South Korea offsetting increased imports of various goods from China and Germany.
Bank of Canada Gov. Tiff Macklem on Monday told Canadian lawmakers he is worried about a rise in trade-policy uncertainty this summer when a U.S.-led review of the existing U.S.-Mexico-Canada trade pact gets underway in earnest. The Trump administration needs to notify Congress about its intention to renew the deal, or choose another course.
Canada's economy is on track to return to growth in the first quarter of the year, though businesses continue to hold back on investments due to trade uncertainty. The sharp rise in oil prices has added to the clouds over the economy, inflating the value of Canadian energy exports while also squeezing consumers with higher gasoline costs.
Canadian exports were up for a third consecutive quarter in the first three months of 2026, rising 3.5% thanks in large part to shipments of energy products and metals and minerals. At the same time, first-quarter imports rose 4.6%, boosted largely by higher purchases of gold from abroad. This widened Canada's merchandise trade deficit to about C$6.5 billion in the first quarter from C$4.2 billion the quarter before.
When international trade in goods and international trade in services were combined, Canadian exports in March rose 6.7%, while imports fell 0.9%. As a result, Canada recorded a monthly trade surplus incorporating both goods and services of C$1.69 billion against a shortfall of C$4.97 billion in February.
Write to Robb M. Stewart at robb.stewart@wsj.com
Corrections & Amplifications
This article was corrected at 11:14 a.m. ET to clarify that Canada for March recorded a merchandise-trade surplus of C$1.78 billion, Statistics Canada said Tuesday. An earlier article misstated the day as Thursday.
(END) Dow Jones Newswires
05-05-26 0856ET
