Canada's Trade Deficit Narrows to C$506M in March

Canada's trade deficit narrowed to C$506 million in March, outperforming expectations as imports fell more sharply than exports, largely due to a 2.9% drop in imports from the U.S. following Canada's retaliatory tariffs on American steel and aluminum. Exports to the U.S. also declined by 6.6%, but this was nearly offset by a surge in exports to other countries, resulting in overall export volumes rising 1.8% despite lower prices. The trade surplus with the U.S. narrowed, reflecting ongoing tariff tensions and shifting trade patterns away from the United States. Although this marks the second consecutive month of declining exports, March's export levels remained 10.2% higher compared to the previous year. The data suggest that while tariffs have strained trade relations and impacted both economies, Canada's trade performance is showing resilience. Future data revisions are expected due to administrative estimation issues with import statistics.