By Promit Mukherjee
OTTAWA, Nov 4 (Reuters) – Canada posted a trade surplus of C$5.35 billion ($3.83 billion) in September, the highest since May 2022, data showed on Wednesday, helped by gold and higher energy exports primarily to the United States.
Higher shipments of these two categories south of the border increased exports to the US by 0.7% in September, widening Canada’s trade surplus with its biggest trading partner to C$12.3 billion, from C$12.1 billion in August, Statistics Canada said.
The share of Canada’s exports headed to the US exceeded 70% for the first time in 13 months.
Excluding gold and energy, Canada’s overall global exports in September dropped 5.6%, hurt by a new set of tariffs imposed by President Donald Trump. In volume terms, exports were down 4%.
Analysts polled by Reuters had forecast a trade surplus of C$4.10 billion in September, slightly down from an upwardly revised C$4.95 billion in August.
The monthly goods trade number is an important indicator of how Canadian exporters are faring and adapting after months of US tariffs. It also shows how the war in Iran has helped Canadian export revenue due to higher crude oil and product prices.
MANY EXPORT CATEGORIES HIT BY TRUMP’S TARIFFS
Exports of metal and non-metallic mineral products increased 8.6% in September, led by exports of unwrought gold which surged 16.8% and contributed the most to the monthly gain. Exports of energy products jumped by 8.2%.
StatsCan said that many export categories such as consumer goods, electronic and electrical equipment and parts and industrial machinery showed significant decreases as these were hit by Trump’s new tariffs.
Trump, whose Republican party lost control of both chambers of Congress in Tuesday’s mid-term elections, slapped a set of new tariffs on Canadian exports in September after trade talks collapsed.
However, this week both countries indicated that talks for a renewed trade deal have intensified.
Total Canadian imports dropped 0.3% in September led by motor vehicle and parts and consumer goods.
Exports to countries other than the United States fell 1.1% in September while imports dropped 1.4%, StatsCan said.
The Canadian dollar was trading 0.57% higher at C$1.3930 to the US dollar, or 71.79 US cents. Yields on Canada’s 2-year government bonds were down 0.8 basis point to 2.656%.
(Reporting by Promit Mukherjee; Editing by Dale Smith, Kirsten Donovan)
