According to Statistics Canada, Canada's imports rose 6.0 percent to a record $51.7 billion in March. Exports also increased, up 3.7 percent to $47.6 billion. As a result, Canada's merchandise trade deficit with the world widened from $2.9 billion in February to a record $4.1 billion in March.
Imports rose 6.0 percent to a record high $51.7 billion in March, with increases in 9 of 11 sections. Motor vehicles and parts and also consumer goods were largely responsible for the increase. Year over year, imports were up 9.2 percent.
Imports of motor vehicles and parts rose 8.3 percent to $10.3 billion, the strongest increase since 2011. Passenger cars and light trucks contributed the most to the March increase, rising 13.0 percent. Higher than usual import levels for March were observed for light trucks. For the section as a whole, volumes rose 10.0 percent, while prices fell 1.5 percent.
Exports rose 3.7 percent in March to $47.6 billion. Aircraft and other transportation equipment and parts; farm, fishing and intermediate food products; and energy products contributed the most to the widespread increase. Exports excluding energy products rose 3.6 percent. Year over year, total exports were up 1.9 percent.
For a second consecutive month, exports of aircraft and other transportation equipment and parts rose sharply, up 24.3 percent in March to $2.3 billion. Exports of boats and other personal transportation equipment almost tripled, mainly due to higher exports of other transportation equipment to Saudi Arabia. Aircraft engines and aircraft parts (+15.2 percent) also contributed to the increase in March, primarily on higher shipments to the United States.
In March, Canada's total trade with countries other than the United States reached a record $31.2 billion, with imports increasing 11.5 percent and exports up 11.4 percent. Imports from China (+26.6 percent) led the increase, mainly on higher imports of computers and computer peripheral equipment and of communications and audio and video equipment. Other notable increases were in imports from the Netherlands (motor gasoline) and Germany (passenger cars and light trucks).
Consequently, Canada's trade deficit with countries other than the United States widened from $5.2 billion in February to $5.8 billion in March.
After rising 3.8 percent in February, imports from the United States increased 3.1 percent in March, mainly due to higher imports of passenger cars and light trucks. Exports to the United States rose 1.2 percent, led primarily by higher exports of crude oil. Comparing the average exchange rates of March and February, the Canadian dollar lost 2.1 US cents relative to the American dollar.
As a result, Canada's trade surplus with the United States narrowed for the fifth consecutive month, moving from $2.3 billion in February to $1.7 billion in March.