Canada’s exports to the U.S. have fallen to their lowest level on record outside the COVID-19 pandemic.
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Official government data shows that Canada recorded an overall trade deficit of $583 million in October 2025 as imports increased at a faster pace than exports. The latest deficit was better than the $1.36 billion forecast among analysts.
However, exports to the neighboring U.S. in October accounted for 67.3% of all Canadian exports, the lowest non-pandemic level on record. The trade deficit and record low shipments to America come after U.S. President Donald Trump imposed tariffs on imports from Canada.
Worsening Situation
Canada has now posted trade deficits in nine out of 10 months during 2025. Canada’s exports rose by 2.1% in October on strength in demand for gold, silver, and other metals. At the same time, the value of Canada’s imports rose 3.4% during the month.
News of the latest trade deficit comes as Canadian Prime Minister Mark Carney heads to China for meetings on Jan. 13 to 17. He becomes the first Canadian Prime Minister to visit China in nearly a decade. The visit aims to improve engagement between Canada and China on trade, energy, agriculture and international security.
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