Canada trade shifts away from US amid trade tensions

Canada’s trade with the United States has tumbled in March, but a surge in exports to other countries have helped make up the downward shift.

Exports to the US dropped by 6.6 percent during the month while imports from the US fell by 2.9 percent amid growing public discontent towards Canada’s longstanding ally and top trading partner, according to data released by Statistics Canada on Tuesday.

Total exports fell by 0.2 percent in March mainly on lower prices whereas imports tumbled by 1.5 percent.

Canada’s trade deficit shrank from 1 billion Canadian dollars (US$1.4bn) in February to 367 million Canadian dollars (US$506m) in March. Its trade surplus with the US fell to 6.1 billion Canadian dollars (US$8.4bn) .

“This decline was almost entirely offset by a significant rise in exports to countries other than the United States,” the agency said, highlighting a 24.8 percent surge in overseas shipments. Canada increased exports of gold to the United Kingdom, crude oil to the Netherlands and various goods to Germany.

Exports of motor vehicles and parts also increased amid US tariffs targeting the auto sector. Exports of pharmaceuticals and uranium to the US as well as pork to Asian markets declined. Natural gas exports also fell.

Steel exports dropped while aluminium exports rose for a fourth straight month. Imports of steel declined, but imports of aluminium grew as both products face 25 percent US tariffs.