Canada's International Merchandise Trade Deficit Lower Than Expected in December; Surplus With The U.S. Narrows

08:46 AM EST, 02/19/2026 (MT Newswires) -- Canada's merchandise trade deficit with the world narrowed to $1.3 billion in December from $2.6 billion in November, as exports increased 2.6% month over month, while imports were up 0.6% month over month, said the country's statistical agency on Thursday.

December's deficit was lower than the $2.10 billion consensus deficit provided by MUFG.

The appreciation of the Canadian dollar (CAD or loonie) impacted on import and export values, pointed out StatsCan. In December, the average value of the Canadian dollar increased 1.3 US cents compared with November. This is the largest monthly increase since January 2025.

Gold exports rebounded and exports of aircraft and other transportation equipment and parts reached a record high.

Canada's merchandise trade surplus with the United States narrowed from $6.5 billion in November to $5.7 billion in December as exports to the U.S. increased 1.1% month over month after falling in the previous two months.

Canada's trade deficit with countries other than the U.S. narrowed from $9.0 billion in November to $7.0 billion in December as exports to countries other than the U.S. rose 5.8% month over month in December to reach an all-time high. Increased shipments of unwrought gold to the United Kingdom contributed the most to the growth in the month, added the Ottawa-based agency.

Imports from countries other than the U.S. fell 3.0% month over month in December.

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