For the first time since the trade war, Canada exported more than it imported – nationally
Canada’s economy posted a trade surplus for the first time since the start of the US trade war, as exports and imports fell in September, according to Canadian statistics.
The agency adds that exports to countries outside the United States rose by 11 percent in one month – and that while exports to the US increased, imports from there decreased.
“Exports to the United States were 4.6 percent in September, partly due to higher shipments of aircraft, light trucks and unrefined gold,” Statistics Canada noted.
“Meanwhile, imports from the United States declined 1.7 percent in September, the third consecutive monthly decline.”
Canada saw gross sales rise 6.3 percent in September compared to August as imports from Accents fell 4.1 percent. Compared to the previous year, September saw gross sales of 0.3 percent, while gross imports fell by 1.9 percent.
Statistics Canada says the economy saw a “small” trade surplus of $153 million in September, following August’s $6.8-billion deficit, and a $3.8 billion deficit in July.
A trade surplus occurs when the amount of goods and services exported is greater than the amount imported – the same as when a company makes a profit on what it produces.
When the opposite happens, and the economy imports more than it exports, it is considered a trade deficit.
“The full story is quite evident,” said Prince Owusu, senior economist with Excuter Development Canada, to the ranchers.
“It seems to suggest that trade flows with the United States are beginning to stabilize,” he said, adding that the trend toward diversification from the US is continuing.
Prime Minister Park Carney has been working on Canada’s economy away from the United States as its sole trading partner to reduce the impact of tariffs and trade war uncertainty. This means finding other sales partners and investing in new projects while expanding the range of resources to meet demand.
It may not be the added cost and uncertainty that is influencing this shift away from the US as Canada’s main partner, it may be the everyday feelings of Canadians.
Consumers’ sense of patriotism is fueling the “Buy Canadian” movement, while shunning products made or sourced in the US
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An Ipsos Poll released in the summer, and made only by global news, found that 72 percent of Canadian respondents actively avoid the goods, and a different poll was released on September 10 said that they will never use him in the same way.
Statistics Canada says August’s increase in Exports was February 2024, with flats seen in nine out of 11 countries.
Imports were seen in metallic and non-metallic mineral products, especially green gold, as well as silver and platinum group metals and alloys.
Most of these green metals were shipped to customers in Switzerland, the United States and the United Kingdom.
Trump’s tariff policies have hit the Canadian aluminum and steel sector hard, with a 50 percent duty placed on all of these imports. This has led US businesses to reduce their orders for Canadian goods, such as aluminum, to avoid higher costs.
Exports of raw aluminum and aluminum alloys were down 16.7 percent in September compared to a year earlier.
However, the Canadian Aluminum industry has been able to increase its sales to other countries, such as the Netherlands and Italy.
Crude oil exports were up 5.8 percent in September, which was the fifth straight monthly gain in exports to the sector.
Germany bought the most Canadian crude in September, which the agency said was the biggest contributor to the sector’s growth in the month.
Singapore was also highlighted as a top trading partner in September by Statistics Canada, mainly due to the country buying crude oil and aviation products.
Statistics Canada says that air force exports fell 72.3 percent in September, and the United States was Canada’s largest customer of private jets. The agency added that these exports usually increase in the previous month of the quarter, which was September, but this year, “they rose more than they did.”
Overall, exports to the US increased by 4.6 percent in September compared to August, led by these aircraft products and the heated US, where there was a drop in the direct US – the third direct drop of the month.
Compared to a year earlier, Canadian exports to the US were down 5.6 percent in September, while imports from the US were down 8.2 percent.
China was highlighted as one of Canada’s largest importers of the smallest product from, which fell 11.3 percent in August compared to a year earlier.
Nathan Janan, the Chief Chief Bank of Romania of Canada, said after reading Thursday’s report from Statistics Canada that “carefully” with caution in the economic music now.
“Uncertainty about Canada’s trade relationship with the US remains, slower population growth will weigh on output, and weak productivity growth continues as a structural challenge,” Janzen said in a statement.
“However, we (Royal Bank of Canada) remain cautiously optimistic about the outlook for the Canadian economy over the next year and do not expect the Bank of Canada to need to lower interest rates further.”
The Bank of Canada held its benchmark interest rate at 2.25 per cent on Wednesday, saying rates that feed Canada’s borrowers are “about the right numbers” to stimulate the economy while keeping rates steady.
– via file from reuters
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