Tue May 06 17:16:12 UTC 2025: ## Canada’s Trade with US Plunges, but Global Exports Surge

**OTTAWA** – Canada’s trade relationship with the United States took a significant hit in March, with exports dropping 6.6 percent and imports falling 2.9 percent, according to Statistics Canada. However, a substantial increase in exports to other countries helped mitigate the overall impact, resulting in a reduced trade deficit.

The decline in US trade comes amid growing tensions between the two nations and follows the US imposition of tariffs on various Canadian goods. While exports of motor vehicles and parts increased despite these tariffs, shipments of pharmaceuticals, uranium, and pork experienced declines. Fluctuations were also seen in other sectors, including steel, aluminum, natural gas, and oil.

Statistics Canada reported that total exports decreased by a modest 0.2 percent for the month, primarily due to lower prices. Imports fell by 1.5 percent, shrinking the trade deficit to CA$367 million (US$506 million) from CA$1 billion (US$1.4 billion) in February. Despite the overall decline, Canada maintained a significant trade surplus with the US, albeit reduced to CA$6.1 billion (US$8.4 billion).

The agency highlighted a remarkable 24.8 percent surge in exports to countries outside the US, with increased shipments of gold to the UK, crude oil to the Netherlands, and various goods to Germany. This surge effectively offset much of the drop in US trade.

Analysts, however, warn that the worst of the trade conflict is yet to come and predict further challenges ahead. TD Economics analyst Marc Ercolao anticipates increasing headwinds to trade in the coming quarters.

The release of the trade data coincided with Canadian Prime Minister Mark Carney’s meeting with US President Donald Trump in Washington, D.C. to discuss the strained relationship. Prime Minister Carney, who campaigned on a platform of resisting President Trump’s “America First” agenda, acknowledged the significant damage to the bilateral relationship. Despite this, he expressed a hope for future collaboration, stating on X (formerly Twitter), “Canada and the United States are strongest when we work together – and that work starts now.”

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