Canada’s trade deficit in October narrowed in line with expectations to Can$924 million (US$658 million), the national statistical agency said on Thursday.
After three consecutive monthly declines, exports increased 1.1 percent while imports rose 0.5 percent following a drop in September, Statistics Canada said, reports BSS.
A surplus with the United States helped Canada avoid a larger overall deficit, but future Canadian trade with its southern neighbor remains uncertain after US President-elect Donald Trump’s threat to implement steep tariffs.
CIBC Economics analyst Andrew Grantham pointed out in a research note that the increase in exports was “far from broad-based, as it was largely driven by a sharp rise in gold exports.”
Most product segments actually posted declines, he noted, and price increases were primarily responsible for the gains.
After two consecutive sharp monthly declines, exports of pharmaceutical products were up a whopping 37 percent, attributable to big shipments of medicines to the US.
Imports rose on higher shipments of metal ores, non-metallic minerals and energy products.
Canada’s trade surplus with the United States, meanwhile, narrowed to Can$6.2 billion.
Last week, Trump sent shockwaves across Canada when he announced 25 percent import tariffs against Canada and Mexico if they failed to curb drugs and migrants entering the US.
Prime Minister Justin Trudeau made a surprise visit on Friday to meet Trump at his Mar-a-Lago luxury estate to try to head off a trade war.
A Canadian government source has told AFP that Canada was considering possible retaliatory tariffs against the United States.
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