According to Statistics Canada, Canada's merchandise trade increased substantially in March, with both imports and exports reaching record highs. Following a 4.8 percent increase in February, imports jumped a further 7.7 percent in March. Meanwhile, exports rose 6.3 percent, with energy products contributing more than half of the increase. As a result, Canada's merchandise trade surplus with the world narrowed from $3.1 billion in February to $2.5 billion in March.
Total imports rose 7.7 percent in March to a record high of $61.1 billion. Gains were observed in 9 of 11 product categories, with 8 posting increases of more than $100 million. In real (or volume) terms, total imports were up 7.0 percent.
Total exports increased by 6.3 percent to $63.6 billion in March, surpassing the previous record set in February by nearly $4 billion. Excluding energy products, exports were up 4.0 percent in March. Once again, higher prices were a key factor in the month, with total exports in real (or volume) terms up 1.1 percent. The price index for Canadian total exports has increased by more than 30 percent since January 2021.
Exports to the United States increased by 7.7 percent in March, largely because of higher exports of crude oil. Meanwhile, imports from the United States increased by 5.4 percent, mainly because of higher imports of energy products and motor vehicles and parts. As a result, Canada's trade surplus with the United States widened from $10.9 billion in February to a record $12.6 billion in March.
Imports from countries other than the United States were up 11.5 percent in March, reaching a record $24.5 billion. Imports from China (+29.4 percent) posted the largest gain by far. Computers and cellphones, industrial machinery, and consumer goods topped widespread increases in imports from this country.
Exports to countries other than the United States were up 1.9 percent in March to $14.4 billion, which also constitutes a record. There were higher exports to the United Kingdom (gold), Spain (pharmaceutical products), South Korea (coal) and Germany (various products).
After the $7.9 billion deficit observed in February, the merchandise trade deficit with countries other than the United States reached a record $10.1 billion in March.