Canada's trade balance turned negative before US tariffs were imposed

Canada saw a significant drop in exports in February, resulting in a trade deficit of 1.5 billion Canadian dollars (about $1.065 billion). This stands in stark contrast to January's surplus of 3.1 billion Canadian dollars ($2.201 billion), as noted by Bloomberg.

CIBC economist Katherine Judge reported that the latest downturn in indicators is largely due to the impending US tariffs. Energy exports, in particular, fell for the first time since September, in line with decreasing oil and gas prices.

Benjamin Reitzes from the Bank of Montreal warned that trade data may continue to be volatile. He linked future fluctuations to companies adapting to new business conditions. In response to the decline in exports, Canada has increased its imports of machinery, equipment, industrial goods, and metals to offset the economic losses.

February witnessed a 0.8% uptick in imports, with their volume remaining largely unchanged, in contrast to a 5% fall in exports.