Canada Reports Record May Exports and $4.2 Billion Trade Surplus

Statistics Canada reported that Canada's merchandise trade surplus rose to $4.2 billion in May, marking the largest surplus in four years. Total exports reached a record $77.1 billion, representing a 0.9 percent increase. This growth was primarily fueled by a 16.1 percent jump in metal ores and non-metallic minerals, specifically gold and sulphur, alongside a peak of $1.2 billion in aluminum exports.

The surge in aluminum and mineral exports was driven by new European markets and shipping disruptions in the Persian Gulf. While the U.S.-Iran war and the closure of the Strait of Hormuz contributed to commodity price volatility and constrained global supply, a mid-June peace agreement subsequently lowered oil prices. Consequently, energy exports fell 2 percent as crude oil volumes declined.

Canada's trade surplus with the United States widened to $11.6 billion, the highest level since January 2025. Economists noted that these net exports suggest the Canadian economy is recovering from a two-quarter slump, though some characterized the current figures as a likely high watermark.