OTTAWA, Canada (AFP) — Canada posted a Can$4.0 billion trade surplus in January on record exports and imports, as threats of US tariffs saw a sudden boost in shipments south, the national statistical agency said Thursday.
The surplus — up from a revised Can$1.7 billion (US$1.2 billion) in the previous month — was the largest since May 2022, and well above expectations.
“It was the fourth consecutive monthly increase for exports and imports, and both reached record highs in January,” Statistics Canada said in a statement.
Exports jumped 5.5 percent as many businesses rushed to ship goods ahead of US tariffs on Canadian imports into the United States in order to avoid additional costs.
Exports of vehicles and automotive parts, whose sector is highly integrated with the United States and Mexico, were the main driver of the increase in exports in January, followed by energy products.
Imports meanwhile rose 2.3 percent, with gains in aircraft and other transportation equipment, electronics, and energy products.
“This represents a very strong start to the quarter but we expect to see a sharp reversal of activity starting in March given the imposition of tariffs,” CIBC analyst Katherine Judge said in a research note.
Canada’s trade surplus with its neighbor and largest trading partner, the United States, widened to a record Can$14.4 billion in January.
On Tuesday, US President Donald Trump made good on a promise to slap 25 percent tariffs on Canadian goods, which saw Ottawa retaliate with counter measures.
The next day, Trump paused them for the auto sector.
