Canada: Prolonged Auto-Sector Disruptions Widened January’s Trade Deficit March 12, 2026

Six of the 11 export categories recorded declines. Exports of motor vehicles and parts fell 21.2% m/m as prolonged seasonal production stoppages reduced Canadian motor vehicle production during the month. This marked the lowest level in that category since September 2021. Exports of metal and non-metallic mineral products also saw a notable decrease (-8.0%), mainly due to lower gold shipments to the United Kingdom. In contrast, a gain in energy exports (4.1%) helped offset losses in other categories. This was thanks to higher natural gas exports to the United States and a third consecutive monthly rise in crude oil exports.

On the other side of the trade balance, seven out of 11 import categories saw decreases. Imports of motor vehicles and parts posted losses (-4.5%), largely coinciding with lower motor vehicle production in the month. Fewer imports of electronic and electrical equipment parts (-3.6%), such as smartphones from China and the United States, also contributed to the decline. In contrast, higher imports of industrial machinery, equipment and parts (3.4%) reflected increased shipments of modules and equipment for a liquefied natural gas production facility in British Columbia.