Canada: Economy Posts Largest Trade Surplus Since May 2022 July 7, 2026

May's trade surplus surpassed the expectations of private sector forecasters by a wide margin. The surplus increased to its highest level since May 2022, posting a third consecutive positive print.

Seven of the 11 export categories posted gains in May. Exports of metal ores and non-metallic minerals led the way (16.1%) higher. This was largely attributed to higher sulphur exports as lower shipments through the Strait of Hormuz constrained global supplies. Exports of metal and non-metallic mineral products grew (1.5%), mostly on the back of higher aluminum exports to Netherlands, Italy and Greece. That said, these export gains were somewhat offset by falling energy exports (-2.0%), mainly driven by lower crude oil exports despite still-elevated prices in the month.

On the imports side, nine of the 11 categories posted gains. Consumer goods imports rose (3.5%), primarily due to stronger imports of batteries and battery chargers from China. Despite these increases, total imports were weighed down by a sharp decline in metal and non-metallic mineral products (-18.2%), partly driven by lower gold imports from non-residents. Consequently, overall imports decreased in the month.

Canada's trade partnerships continue to evolve. Despite stunted trade with the , trade with other countries has risen (graph 3). Consequently, non- countries now account for 30.3% of exports on a seasonally adjusted basis in May 2026, well above around 25% in the years before the pandemic.