Canada's merchandise trade position deteriorated sharply in November, with the deficit widening to $2.2 billion as export volumes contracted across several major industrial categories.
Total exports declined 2.8% in the month, a fall that outpaced a marginal 0.1% drop in imports and overturned the narrow balance that Canada had posted in recent months. The broad retreat in shipments was concentrated in a handful of sectors, with the most pronounced move seen in mineral-related exports.
Mineral product volatility
Exports of metal and non-metallic mineral products plunged 24.4% in November. That sharp reversal followed two months of record increases in unwrought gold shipments, which had lifted volumes earlier in the quarter. Those exceptional gold flows receded from highs that were reported in the United Kingdom and Hong Kong markets, producing sizeable month-to-month volatility in the mineral product category.
Automotive sector headwinds
The motor-vehicle sector also weakened materially. Motor vehicle exports fell to their lowest level in three years, and production slowed by 11.6% in the month. The report notes a persistent semiconductor shortage and the introduction of new American tariffs on heavy trucks as significant factors that weighed on cross-border shipments and on production rates.
Energy provides partial offset
Energy products were the only major category to post a meaningful increase in November, rising 8.5%. That improvement was driven by higher volumes of crude oil and bitumen, which recovered after refinery shutdowns in the United States in October had previously constrained flows.
Trade partners and import dynamics
Imports from the United States fell 5.4%, their weakest showing since early 2022, with the decline attributed to cooled American manufacturing output. By contrast, imports from overseas suppliers reached an all-time high in November, supported by a surge in pharmaceutical shipments from Belgium and an increase in consumer goods arriving from China.
Goods and services balance
When services are included, the combined balance of goods and services moved into a $2.2 billion deficit, a deterioration from October's modest surplus. The shift underscores growing pressure on Canada’s trade position amid changing global demand patterns and new trade barriers.
For sectors tied to production rates and supply chains - notably automotive, metals and energy - the November reading highlights the sensitivity of export performance to inventory swings, component shortages and policy changes that affect cross-border flows.