Canada records a big jump in trade deficit in November as exports fall

Imports also drop but minimally with total imports down only 0.1% to C$66.14 billion

Canada posted a huge jump in its monthly international trade deficit in November as its merchandise exports dropped by a big margin, led by metal and non-metallic product exports, data showed on Thursday.

It posted a goods trade deficit of C$2.2 billion ($1.62 billion) in November, up from an upwardly revised C$395 million registered in the prior month, Statistics Canada said.

Barring September, when Canada posted a marginal surplus, the trade balance has been in deficit since February last year, largely coinciding with the start of uncertainty driven by President Donald Trump's tariff and threats.

Trump's tariffs on steel, automotive, aluminum and lumber have hit these critical sectors hard.

The November trade data has been delayed as information for Canadian exports to the US was unavailable due to a 43-day government shutdown in the US between October and November, impacting data collection for several months.

The November deficit was largely driven by a 24.4 percent drop in the exports of metals and nonmetallic goods, led by drop in exports of unwrought gold, StatsCan said.

In November, large declines were observed in exports of unwrought gold to the United Kingdom, the US and Hong Kong, it said.

In volume terms, exports were down 0.9 percent.

Exports of motor vehicles and parts fell by 11.6 percent. This was the biggest drop seen in this category in three years, the statistics agency said.

Imports also dropped but minimally with total imports down only 0.1 percent to C$66.14 billion. Imports of motor vehicles and parts and energy products led the slight decline.

US TRADE

Exports to the US decreased by a smaller amount than the fall in imports from south of the border, helping boost Canada's merchandise trade surplus with the US to C$6.6 billion in November, up from C$5.2 billion in October.

Imports from the US dropped 5.4% while exports dropped only 1.8 percent.

Canada exported roughly 68% of its total exports to the US in November and sourced around 56% of its total imports, StatsCan's data showed.

Imports from countries other that the US rose 7.8 percent, its highest level in current records, StatsCan said, adding that this was led by China and Germany.

However, exports to other countries apart from the US fell by 4.9 percent, taking Canada's trade deficit with countries other than the US to C$8.8 billion in November, from $5.6 billion in October.