Canada posts a trade surplus in September, beating expectations of a deficit

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Canada posts trade surplus of C$153 million in September

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This is the first ever trade surplus since January 2025

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Canada's surplus with U.S. at its highest level since February

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Total exports in September grew by 6.3% to C$64.23 billion

(Adds economist's comments in paragraphs 7-9, updates currency in paragraph 20, graphics in paragraphs 14)

By Promit Mukherjee

OTTAWA, Dec 11 (Reuters) - Canada posted a small monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits, data showed on Thursday.

It registered a marginal trade surplus of C$153 million ($110.92 million) in September, following a C$6.43 billion deficit in the prior month, Statistics Canada said.

This was the first ever surplus that Canada has posted since President Donald Trump threatened and later imposed tariffs on critical sectors which choked significant exports to the U.S., Canada's biggest trading partner. The bulk of the surplus was driven by a 44% jump in Canada's trade surplus with the U.S., StatsCan's data showed.

The September trade data, which was due in November, was delayed as information for Canadian exports to the U.S. was unavailable due to a 43-day government shutdown in the U.S.

Analysts polled by Reuters had forecast the trade deficit at C$4.5 billion for September. Economists said the trade numbers show that Canada's international merchandise trade was finally starting to normalize.

"Overall story is really positive," said Prince Owusu, Senior Economist with Export Development Canada.

"It seems to suggest that the trade flow with the United States is beginning to stabilize," he said, adding that the trend of diversification from the U.S. that started is also continuing.

Canada's total exports in September grew by 6.3% to C$64.23 billion, rebounding from a drop of 3.2% in August, and were driven by higher exports in nine out of 11 product sections. This was the largest percentage increase since February 2024. This was led by U.S. exports that grew by 4.6% and exports to countries other than the U.S. growing by 11%, StatsCan said.

Exports of metal and non-metallic mineral products and aircraft and transportation equipment and parts led the gains with an over 20% rise in exports. In volume terms, total exports rose 4.1%, the statistics agency said. Total merchandise imports dropped by 4.1% in September to C$64.08 billion.

SURPLUS WITH THE U.S. Exports to the U.S. grew to C$45.84 billion from C$43.83 billion in August, helped by outbound shipments of aircraft, light trucks and unwrought gold, StatsCan said.

The U.S. accounted for over 71% of Canada's exports in September. Imports from the U.S. declined 1.7% in September, a third consecutive monthly decrease, taking Canada's trade surplus with the U.S. to its highest level since February. Higher shipments of unwrought gold, crude oil and aircraft led the jump in exports to countries other than the U.S. Imports from countries other than the U.S. dropped 7.3%. Canada's trade deficit with countries other than the United States has narrowed sharply, posting the lowest deficit since October 2024, Statistics Canada said.

The Canadian dollar firmed in early trade and was trading up 0.2% to 1.3767 to the U.S. dollar, or 72.64 U.S. cents. Yields on the two-year government bonds were down 0.2 basis points to 2.524%.

($1 = 1.3794 Canadian dollars)

(Reporting by Promit Mukherjee; Editing by Dale Smith and Franklin Paul)