Canada's 2025 Trade Deficit Hits Historic High as Gold Rush Masks True Impact

New Trade Deficit Record

In 2025, Canada's annual trade deficit expanded to CAD 31.3 billion, the largest since records began in 1988 outside the pandemic period. This reflects growing vulnerabilities in Canada's international trade dynamics.

Tariff Impact on Exports

U.S. tariff hikes on key Canadian exports triggered a 0.2% overall decline in export values. Most industrial sectors registered falling export revenues, highlighting Canada's exposure to cross-border trade tensions.

Gold Surge Masks Weakness

Strong precious metals exports, with a 41.7% surge in gold shipments, temporarily masked broader export sector struggles. Excluding gold-related exports, total export values fell by 3%.

• Gold and precious metal exports surged
• Manufacturing and automotive exports declined
• Deficit figures reveal structural imbalances