Highlights of Canada’s merchandise trade performance – 2025 Update

Table of contents

• Highlights
• 1. Overview
  • 1.1. Trade by sector
  • 1.2. Prices and volumes
• 2. Regional Review
  • 2.1. Regional trade performance overview in 2025
  • 2.2. United States
  • 2.3. Latin America and the Caribbean
  • 2.4. Europe and Central Asia
  • 2.5. Indo-Pacific
  • 2.6. Middle East
  • 2.7. Africa
• Bibliography
• 3. Appendix

Highlights

• A sharp shift in U.S. trade policy in 2025 reshaped global trade patterns, increasing uncertainty and reorienting flows worldwide, with broad global repercussions for major trading partners.
• Despite weaker U.S. demand for several key products, Canada expanded exports to new markets, supported in part by high gold prices, allowing non-U.S. markets gains to almost fully offset these losses.
• Amid heightened uncertainty, Canada’s merchandise trade proved resilient in 2025, as imports rose by 2.8% while exports edged down by only 0.2%.
• Merchandise trade increased in all regions except the U.S.. Record trade levels were recorded with Latin America and the Caribbean (LAC), Europe and Central Asia, the Indo‑Pacific, and Africa.
• Prices accounted for the entire increase in imports (+2.7%), while import volumes remained unchanged for a second consecutive year. On the export side, a 0.8% increase in prices partly offset a 1.0% decline in volumes.
• Regional Trade Performance:
  • United States: Total merchandises trade with the U.S. decreased by 4.8% in 2025, marking the first decline since 2016 (excluding the Covid-19 period), with both exports and imports falling by -5.3% and -4.2% respectively.
  • Latin America & Caribbean: Exports to the region increased by 5.5%, driven by shipments to the region’s two largest economies, Mexico and Brazil, as well as Chile, while imports rose sharply by 16.0%, largely reflecting record‑high imports from Mexico.
  • Europe and Central Asia: Canadian exports to this region grew the most (+30.0%) among all the regions in 2025, mainly driven by gold exports to the United Kingdom. Imports rose by 7.8%, reflecting stronger gold imports.
  • Indo-Pacific: Exports to the Indo-Pacific region increased (+6.4%) after 2 years of declines, mainly driven crude oil exports while imports increased by 7.9%, mainly from Vietnam.
  • Middle East: Following a decline in trade in 2024, imports from the region increased by 3.5%, largely driven by aluminum, as exports to the region remained flat (+0.1%).
  • Africa: Exports to the region increased by 18.0%, mainly driven by growth to Nigeria and Algeria, while imports rose even more sharply, by 25.3% in 2025, across 9 of the top 10 largest import partners.

1. Overview

2025 was an eventful year for global trade, beginning with heightened U.S. tariff rhetoric early in the year, which prompted American firms to front‑load imports in anticipation of rising costs. The introduction of new tariffs under the International Emergency Economic Powers Act (IEEPA), which began taking effect in early February and expanded further in the spring, added to the mounting uncertainty. The U.S. “Liberation Day” announcements in early April 2025 then triggered retaliatory tariffs from several countries, including Canada, marking the peak of trade uncertainty for the year. Although some trade agreements were reached, for example between the U.S. and the European Union, the average effective tariff on U.S. imports reached in 2025 the highest level since 1947 (York & Durante, 2026).

Global GDP is estimated to have grown by 3.4% in 2025 (IMF, 2026), matching its pace from 2024. Canada’s economy is projected to have expanded by 1.7% in 2025 (Bank of Canada, 2026), a modest outcome, yet still the second‑strongest growth rate in the G7, surpassed only by the U.S. at 2.1% (IMF, 2026).

In 2025, Canadian merchandise^{Footnote 1} trade increased moderately (+1.3%) as imports rose 2.8% to $789.0 billion, and exports declined slightly (-0.2%) to $779.0 billion.

Figure 1: Value of Canadian merchandise exports and imports

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

1.1. Trade by sector

In 2025, total Canadian merchandise exports declined by 0.2%. Although exports of metal and non‑metallic mineral products increased by an impressive $10.6B (+11.1%), driven mainly by gold and marking a second consecutive year of strong growth, this increase was insufficient to offset declines in 7 of the 11 product sectors (Figure 2). The largest decline was recorded in energy products (-3.5% or -$6.9B). This followed a sharp increase in 2024, driven by the start of operations of the Trans Mountain pipeline expansion, which significantly boosted crude oil exports, particularly to the U.S., China, India, South Korea, Brunei, and other markets. While export volumes continued to rise in 2025, a decline in oil prices more than offset these gains, resulting in an overall decrease in export values. Exports of basic and industrial chemical, plastic and rubber products, as well as forestry products and building and packaging materials, also declined by more than $4.6 billion in 2025, driven by both price and volume effects. To a lesser extent, the motor vehicles and parts sector declined (-4.7% or -$4.0B) for the second consecutive year, driven by lower Canadian production due to a semiconductor shortage, U.S. tariffs and uncertainty surrounding the transition to electric vehicles (Friedman, 2026).

Figure 2: Canadian merchandise export growth (%), by sector

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Canadian merchandise imports rose by 2.8% (+$20.9B), with increases recorded in 8 of the 11 product sectors. The rise was widespread, with consumer goods accounting for a third of the total import gain, representing the largest level increase (+4.8% or $+7.5B). The largest percentage increase was in metal ores and non‑metallic minerals (+32.6% or +$6.8B), driven by higher gold imports due to increases in both volumes and prices, mainly from Latin America, Switzerland, and South Africa. Finally, imports of electronic and electrical equipment and parts also rose substantially, increasing by 6.0% (+$5.3B) in 2025.

However, 2 sectors partially offset this increase: energy imports, which fell 4.0% (‑$1.6B) as New Brunswick imported less crude oil from the U.S.. Motor vehicles and parts also declined 1.0% (‑$1.4B), as a result of supply‑chain pressures, changing market conditions linked to electric vehicle adoption, and tariff uncertainties in North America.

Figure 3: Canadian merchandise import growth (%), by sector

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

1.2. Prices and volumes

In 2025, world merchandise trade volumes grew 4.4% (CPB economic Policy Analysis, 2026) while the volume of Canadian exports decreased by 1.0% and imports remained unchanged (+0.0%) (Figure 4).

Figure 4: Canadian merchandise export and import price and volume index, 2017 = 100

Data: Statistics Canada Table 12-10-0170-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Canada’s export volumes declined (-1.0%) in 2025, following a 1.1% increase in 2024 was especially marked in the metal and non-metallic mineral products (-9.4%), a category that includes gold. However, variation in gold volumes is quite common as gold is both a commodity and a financial asset. Despite the introduction of U.S. Section 232 tariffs on passenger vehicles in early April 2025, the volume of motor vehicles and parts fell by only 1.5% in 2025, compared with a 7.6% decline in 2024.

Canada is a major resource exporter and therefore, commodity prices have an impact on trade values. In 2025, precious metal prices increased by a remarkable 42.3% (Figure 5), following a strong 21.2% rise in 2024. This surge was driven mainly by gold (+42.9%), which is the precious metal Canada exports the most. It was the strongest annual gain since the late 1970s, as gold served as a safe haven amid heightened uncertainty. Platinum (+32.7%) and silver (+39.6%) also recorded strong price gains. Fertilizer prices rose by 16.9% in 2025, offsetting the decline experienced in 2024. While agricultural prices remained unchanged in 2025, energy prices fell by 12.1%, mainly due to lower crude oil prices.

Reflecting these commodity price developments, export prices increased by 0.8% in 2025, driven by a significant rise in metal ores and non‑metallic minerals (+6.7%), especially gold. In contrast, energy product prices declined 6.4%, mainly due to lower crude oil prices as strong global oil production growth outpaced consumption, resulting in continued oversupply. In contrast, import growth in 2025 was price‑driven, with import prices rising by 2.7%. Price increases were most pronounced for metal and non‑metallic mineral products (+7.6%), reflecting higher precious metal prices.

Figure 5: World Bank Commodity price data (Real 2010 U.S. dollars)

Data: World Bank. (2026). World Bank Commodity Price Data (The Pink Sheet), retrieved on 13-02-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Additionally, in 2025, the Canadian dollar depreciated against the currencies of many of Canada’s major trading partners. It fell by 2.0% compared against the U.S. dollar in 2024, reaching USD$0.715 per CAD, its lowest level since the early 2000s (Banque du Canada, 2025). The Canadian dollar declined even more against the pound sterling (-5.0%) and the euro (-6.1%) in 2025 compared to 2024. As a result, this made Canadian imports more expensive, especially with our largest trading partners, while simultaneously boosting the competitiveness of Canadian exports.

2. Regional Review

2.1. Regional trade performance overview in 2025

In 2025, Canadian merchandise exports and imports rose across all regions except the U.S., partly reflecting the uncertainty associated with U.S. trade actions during the year.

Canadian merchandise exports to the U.S. declined by $31.3B in 2025 (‑5.3%). While exports to non‑U.S. markets increased over the year, these gains were insufficient to fully offset the contraction in exports to the U.S. In particular, exports to Europe and Central Asia rose sharply, increasing by $22.3B (+30.0%), following another strong expansion in 2024 (+$14.5B or +24.2%).

Canadian merchandise imports from the U.S. decreased by $15.8B (-4.2%), a smaller decline compared with exports. This drop was fully offset by higher imports from the Indo-Pacific region (+$14.4B or +7.9%) and from Latin America (+$12.3B or +16.0%), with the latter marking its fifth consecutive annual increase. Imports from Europe and Central Asia also rose considerably (+$8.5B or +7.8%).

Figure 6: Annual Canadian merchandise trade growth by region (2025/2024, level change, $billion)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Figure 7: Countries by regions

Source: Office of the Chief Economist, Global Affairs Canada.

While trade growth with the U.S. declined in 2025, the U.S. remains Canada’s largest trading partner. However, the share of Canadian merchandise exports to the U.S. fell to its lowest level since the early 1980s, accounting for 72.5% of Canadian merchandise exports compared with 76.3% in 2024. Meanwhile, the share of Canada’s merchandise exports to Europe and Central Asia grew from 9.5% in 2024 to 12.4% in 2025.

Figure 8: Share of Canada’s merchandise of exports by region, 2025

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2025.
Source: Office of the Chief Economist, Global Affairs Canada.

Figure 9: Change in the value of Canadian merchandise exports by trading partner, 2025 vs 2024

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

The share of Canadian merchandise imports from the U.S. fell to its lowest level on record (based on data available since 1946), declining from nearly half of all Canadian imports in 2024 (49.6%) to 46.2% in 2025. At the same time, the share of imports from Latin America and the Caribbean (LAC) increased by 1.3 percentage points to 11.3% and the share from the Indo‑Pacific region rose by 1.2 percentage points to 25.3%.

Figure 10: Share of Canada’s merchandise of imports by region, 2025

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Figure 11: Change in the value of Canadian merchandise imports by trading partner, 2025 vs 2024

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

2.2. United States

The U.S. economy expanded by 2.1% in 2025 (U.S. BEA, 2026) but slowed down relative to 2024 (2.8%). Growth was driven mainly by strong household consumption and, to a lesser extent, investment. Exports to markets other than Canada, Mexico, and China, as well as increases in public spending, also contributed positively to growth. However, there were also signs of weakness, as inflation remained relatively persistent and the unemployment rate stayed elevated, reaching 4.4% in December 2025.

Bilateral merchandise total trade between Canada and the U.S. decreased by 4.8% in 2025, after increasing slightly in 2024 (+0.4%). This marks the first decline since 2016, excluding the COVID-19-related drop in 2020.

Canadian merchandise exports to the U.S. decreased in 2025 by 5.3% reaching $564.6B yet still exceeding the pre‑COVID average (2010-2019) of $382.4 billion by a wide margin.  The decline was broad-based, with decreases in every category except aircraft and other transportation equipment and parts (+6.8%) and electronic and electrical equipment and parts (+0.2%). The largest drop in dollar terms occurred in exports of energy products, down $12.3B (-7.2%), driven mainly by lower crude oil prices, but also by lower volumes. Categories impacted by U.S. tariffs were particularly affected, including motor vehicles and parts (-$4.6B or -5.9%), metal and non-metallic mineral products (-$4.4B or -8.0%), largely aluminum, and forestry products and building and packaging materials (-$4.0B or -9.8%), such as softwood lumber.

At the same time, Canadian merchandise imports from the U.S. also declined, by 4.2% to $361.7B, a level still significantly higher than the pre‑COVID average (2010-2019) of $264.7 billion.  The largest level decline occurred in motor vehicles and parts (‑$5.2 billion or ‑6.3%), marking a second consecutive yearly decrease. This category was directly affected by recent trade policy changes, given the high degree of integration between the 2 countries in this sector. Metal and non‑metallic mineral products imports from the U.S. also decreased significantly (‑$3.2 billion or ‑11.1%), driven largely by declines in items such as iron and steel.

Figure 12: Canadian bilateral merchandise trade with the United States (% change, 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

2.3. Latin America and the Caribbean

Latin America and the Caribbean's (LAC) economic growth remained stable in 2025, with GDP growth at 2.4%, (IMF, 2026), the same as 2024. Argentina, the third largest economy in the region, drove the growth in this region, increasing by 4.4% in 2025, after a decline in 2024. Brazil’s real GDP increased strongly by 2.3% in 2025, with growth in the region’s largest economy driven mainly by the agricultural sector. By contrast, Mexico, the second-largest LAC economy, recorded GDP growth of just 0.6% in 2025, weighing on regional growth amid declining public and private investment, heightened trade uncertainty, and the upcoming renegotiation of CUSMA.

Canadian two‑way merchandise trade with Latin America and the Caribbean (LAC) grew strongly in 2025 (+13.9%), reaching $109.7 billion. This follows robust growth over the past 5 years, with trade expanding by 52.8% during this period.

Canada’s merchandise exports to the region rose by 5.5% in 2025, reaching $20.8B, following a 10.3% decrease in 2024.  While exports didn’t expand as fast as imports, they demonstrate a deepening of markets for Canada in a few key countries. Nearly 65% of Canada’s exports to Latin America and the Caribbean went to its top 3 exports partners in the region. Exports to Mexico increased by $228M (+2.6%) in 2025, driven by growth in exports of oil seeds and animal or vegetable fats & oils after a significant decline in 2024. However, the increase was partly offset by a significant decline in iron and steel products and in motor vehicles and parts in 2025. The largest export increase in the region was to Brazil in 2025, rising by $632M (+25.3%), driven almost entirely by a rise in fertilizer (+50.4%) caused by an important increase in volume (+35.2%) and also prices (+11.3%).  In contrast, exports to Peru decreased strongly in 2025 (-$215M or -13.1%) compared to the 18.9% increase in 2024, mainly due to a drop in the volume of exports of refined petroleum products.

Figure 13: Canadian merchandise exports to top partners in Latin America and the Caribbean ($ Billions and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Canada’s merchandise imports from LAC increased significantly by 16.0%, reaching a new record of $88.9B. Meanwhile, imports from 8 out of the top 10 import partners grew in 2025.  Imports from the region have now grown for 4 consecutive years.

Canada’s imports to this region are even less diversified compared to its exports as Mexico on its own accounted for 60.1% of total imports from the region in 2025.  Imports from Mexico increased by $5.9B (+12.5%), reaching a new record high after increasing for 5 straight years. The increase was widespread, with significant increases in motor vehicles and parts and machinery. Additionally, the imports from Peru ($1.6B or 25.9%), Colombia (+$1.4B or 102.7%) and Brazil (+$1.4B or 13.4%) rose impressively, mainly driven by increases in gold imports.

Figure 14: Canadian merchandise imports from top partners in Latin America and the Caribbean ($ Billions and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Trade with LAC: product view

Exports to LAC only increased in 5 out of the 11 product sectors. More specifically, the largest increase in value was in farm, fishing and intermediate food products rising by $808M (+20.3%), mainly to Mexico, Ecuador, Peru and Chile. Metal ores and non-metallic minerals also rose considerably (+$671M or 41.8%), mainly to Brazil, but also to a smaller extent to Chile and Cuba. Offsetting this increase, a decline of $330M (-23.0%) in exports in metal and non-metallic mineral products from the region occurred in 2025, mainly from Mexico.

Imports from LAC increased in 8 out of the 11 product sectors. However, the declines in the other categories were minimal compared to the increases. The largest increase was in metal ores and non-metallic minerals (+$5.9B or 44.6%), driven mainly by gold, as mentioned previously. Imports of motor vehicles and parts also rose considerably (+$3.0B or 13.9%), mainly from Mexico, where imports of this product have more than doubled over the past five years. Additionally, imports of electronic and electrical equipment and parts from LAC increased by $1.5B in 2025 (+15.7%), a rise attributable mainly to Mexico, which remains Canada’s dominant supplier in this region in this product category.

Figure 15: Canadian merchandise trade with Latin America and the Caribbean, by product (% change, 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

2.4. Europe and Central Asia

In Europe, economic growth was 1.5% in 2025, following a stronger 1.9% increase in 2024 (IMF, 2026). The continent felt the impact of the shifting global landscape and its associated uncertainty, while also benefiting from front‑loaded exports to the U.S. in the first half of the year. Some of the largest European economies experienced sluggish growth in 2025, with Germany expanding by only 0.2%, France by 0.9%, and Italy by just 0.5%, while the United Kingdom grew by a modest 1.3% (IMF, 2026). Central Asia and the Caucasus’s economies rose by 4.5% in 2025 (IMF, 2026). This growth remains strong, as these economies were not directly affected by the global trade disruption due to their low dependence on U.S. export markets.

Despite this slower GDP growth, two-way merchandise trade between Canada and the Europe and Central Asia region grew by an impressive 16.7% to reach $214.8B in 2025, its highest level to date.

Merchandise exports increased by a record 30.0% (+$22.3B) to reach $96.7B, following another record year in 2024 (+$14.5B or +24.2%). However, there is always more to the story beneath these headline numbers, including the outsized role that gold is playing. Gold has accounted for more than half of Canada’s merchandise export gains to this region in 2025. Although, even excluding gold, exports to this region still increased by an impressive 17.6% in 2025. The largest exports increase in gold was to the United Kingdom (+$17.4B or +76.4%) and which accounted for 85.9% of total Canadian exports to that country. The increase in gold exports was mainly driven by the sharp rise in prices, rather than by higher export volumes. While the impressive annual increase in exports to the United Kingdom (+$17.9 billion, or +62.2%) was driven primarily by gold for the second consecutive year, the rise in export volumes of mineral fuels and oils, mainly crude oil, played a smaller role as the second‑largest export category. In contrast, exports of aircraft and parts declined to the United Kingdom. While exports to the region’s next four most important partners also increased as shown in Figure 16, the rise in exports to the Netherlands was particularly notable (+$2.4 billion or +33.7%), driven mainly by higher shipments of crude oil and aluminum. Exports to Germany also grew significantly (+$2.4 billion or +34.4%), with gains spread across a broad range of products. However, these increases were partly offset by a sharp $3.6 billion decline in exports to Switzerland, a major global financial center, due largely to a substantial drop in gold export volumes, even as gold prices rose.

Figure 16: Canadian merchandise exports to top partners in Europe and Central Asia ($ Billions and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

In 2025, Canadian imports from Europe and central Asia grew by 7.8% (+$8.5B) to reach $118.1B, following a slight decline (-0.1%) in 2024.  The sharp rise was broad-based across the top 10 import partners, with the exceptions of the Netherlands and Belgium. The notable contributor to the growth was Switzerland, from which imports rose by $2.3B rise (+28.3%) in 2025, largely due to a substantial surge in gold volumes compared with previous years. Imports from Germany (+$1.5 billion or +6.3%) and Ireland (+$1.1 billion or +27.5%) were both driven by higher machinery shipments. Italy also posted a solid increase (+$1.2 billion or +9.4%), reflecting stronger imports of pharmaceuticals, electronics, and precious stones and metals. Sweden moved up from Canada’s 9th largest import source in Europe and central Asia in 2024 to 6th in 2025, supported by a $1.1 billion (+27.7%) rise led by copper and vehicles.

Figure 17: Canadian merchandise imports from top partners in Europe and Central Asia ($ Billions and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Trade with Europe and central Asia: product view

In 2025, Canadian exports increased in 9 of 11 product sectors. The largest gain occurred in metal and non‑metallic mineral products, which rose by $15.9 billion (+47.9%), driven primarily by the already discussed gold exports to the United Kingdom. The second‑largest increase was in farm, fishing, and intermediate food products (+$1.9 billion or +38.9%), mainly reflecting higher shipments to the Netherlands (oilseeds and food residues), France (oilseeds), Spain (cereals), and Germany (oilseeds). Finally, exports of energy products grew strongly (+$1.8 billion or +24.7%), supported by increased crude oil exports to the Netherlands, the United Kingdom, Germany, and Italy.

The increase in imports was also observed in 9 out of 11 product sectors. The most significant change in overall value occurred in imports of metal and non‑metallic mineral products (+$4.0 billion or +49.7%) following a 7.2% decline in 2024, driven mainly by higher imports from Switzerland and, to a lesser extent, from Sweden and Spain. Increases in electronic and electrical equipment and parts, as well as in consumer products, also contributed to the overall rise. The imports growth from the region was partly offset by a $1.4 billion (-17.4%) decline in basic and industrial chemical, plastic, and rubber products, mainly from lower imports of organic chemicals from Switzerland.

Figure 18: Canadian merchandise trade with Europe and Central Asia, by product (% change, 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

2.5. Indo-Pacific

Economies in the Indo-Pacific region showed resilience in 2025, growing 4.9% amid the uncertainty, slightly higher than in 2024 (IMF, 2026). It was the fastest growing region in 2025. This region benefited from U.S. firms frontloading imports in the beginning of 2025 as well as supportive monetary and fiscal policy. However, domestic demand, especially consumption, remained weak in many countries. China’s economy continued to play a key role in the region with a 5.0% GDP growth for a second consecutive year in 2025, despite tariffs, weakening investment and reduced fiscal impulse. Japan, the region’s second‑largest economy, expanded by 1.2% in 2025 following a 0.2% contraction in 2024, but still weighed on overall regional growth despite stronger private investment and higher consumption. India contributed positively to overall Indo‑Pacific growth, supported by a recovering labour market that boosted private consumption, as well as strong government capital expenditures, resulting in robust GDP growth of 7.6% in 2025 (IMF, 2026).

Two-way merchandise trade between Canada and the Indo-Pacific increased by 7.4% to $281.4B in 2025, a second year of increase. This increase was led by a 7.9% rise in imports from the Indo-Pacific region reaching $198.0B, while exports grew by 6.4% to $83.4B.

The increase in exports to the Indo-Pacific region followed 2 years of consecutive declines. As Canada’s largest merchandises export partner in the region, and third-largest overall, China accounted for most of the increase; excluding China, exports to the region would have risen by only 1.3%. Exports to China increased by an impressive 14.7% (+$4.4 billion) in 2025, rebounding strongly after a decline in 2024. With the Trans Mountain Expansion operating for the full year in 2025, its impact is clearly evident with exports of crude oil to China rising by $4.0 billion (+165.1%) and, making China the largest destination of Transmountain crude oil in the region (Statistics Canada, 2025). The increase in exports to China was also supported by higher shipments of copper and iron ore, while a decline in rapeseed (used in the production of canola oil) due to Chinese tariffs partially offset these gains. However, Canada recorded declines with its three next largest major export destinations in the region after China. The sharpest drop was with India, where exports fell by $1.4 billion (-27.0%), driven by lower shipments of vegetables and mineral fuels. Exports to Japan (-$419 millions or -2.8%) and South Korea (-$553 millions or -7.2%) also decreased, with coal playing a notable role in this year’s downturn for both markets. A bright spot was Singapore, to which rose by $936M (+41.6%), largely reflecting increased crude oil shipments, again thanks to the Trans Mountain pipeline expansion.

Figure 19: Canadian merchandise exports to top partners in the Indo-Pacific region ($ Billions and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Trade with the region remains highly concentrated in China, which accounts for 41.3% of regional exports and 45.8% of regional imports (or 11.5% of total imports). While imports rose across nearly all major partners, Japan was the sole exception, recording a modest decline (-$270 million or -1.3%) driven by weaker electronics imports. The largest increase in imports from the region was from Vietnam, Canada’s third largest import partner in the region, with a $4.6B increase (+31.0%). It was widespread but machinery (computers) and electronics products (smartphones) each played prominent roles in the growth. Canadian imports from China increased by $1.7B (+1.9%), mainly in toys, games & sports equipment, iron and steel products, and plastics, while a decline in vehicles (-$1.1B or -21.1%) partly offset the overall increase. The decline in vehicles coincided with the tariffs on all Chinese-made electric vehicles in October 2024. It is interesting to note that Canadian imports of electric cars from the world declined by 47.5% in 2025. Additionally, imports from India also increased by $1.7B (+20.6%) driven mainly by imports of diamonds, office machines and medicaments.

Figure 20: Canadian merchandise imports from top partners in the Indo-Pacific region ($ Billions and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Trade with the Indo-Pacific region: product view

In 2025, Canadian exports increased in 7 of 11 product sectors (Figure 21). While some countries benefited from the Trans Mountain Expansion, the project contributed to only part of the overall increase in energy exports. Energy product exports rose by $3.8 billion (25.4 %), largely reflecting higher shipments to China, alongside rapid growth to Hong Kong, Singapore, Indonesia, and Malaysia, whereas exports to Japan and South Korea declined. Exports in metal ores and non-metallic minerals (+$2.0B or +16.2%) and in aircraft and other transportation equipment and parts (+$1.3B or +59.8%) were also notable. For a second consecutive year, farm, fishing and intermediate food products declined, the largest decline in value since 2019 (-$2.4B or -13.7%), driven by China and India, while exports to Japan increased (meat and rape and canola seeds).

Additionally, Canadian imports from the region increased in 9 of the 11 product sectors. While the growth was widespread, the largest increase was in consumer goods (+$7.4B or +14.0%), mainly from China, Vietnam, and India. Consumer goods imports from Australia were also significant, rising by 56.4% in 2025, driven primarily by meat products and precious stones and metals. Significant increases were also recorded in imports of industrial machinery, equipment, and parts, as well as electronic and electrical equipment and parts, mainly from Vietnam, while imports of basic and industrial chemicals, plastics, and rubber products increased notably from China.

Figure 21: Canadian merchandise trade with the Indo-Pacific region, by product (% change, 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

2.6. Middle East

The Middle East economy grew by 3.0% in 2025 (Oxford Economics, 2026), largely driven by Saudi Arabia, the region’s largest economy and the world’s 18th largest. Saudi Arabia’s GDP expanded by 4.5%, primarily supported by oil-related activities. A similar pattern was observed in the United Arab Emirates, where GDP grew by 5.5% in 2025, also reflecting increased oil production.

Canadian two‑way merchandise trade with the Middle East grew by 1.6% in 2025 to reach $11.5B. With nearly 19% of trade concentrated in mineral fuels and oils, trade with the region remains highly sensitive to oil price fluctuations.

Exports to the region were broadly flat in 2025, edging up by $4.4 million (+0.1%) after declining by 1.1% in 2024. The largest increase was to Israel, with exports rising by $274 million (+58.0%), driven mainly by motor cars. Exports to the United Arab Emirates, Canada’s key export partner in the region, also increased notably (+$257 million or +10.0%), reflecting broad‑based growth, particularly in machinery, electronics, and scientific instruments. Exports to Bahrain rose sharply as well (+$154 million or +80.0%), led by iron ores and machinery. These gains were more than offset by a substantial decline in exports to Saudi Arabia (–$742 million or -36.8%), largely due to lower shipments of tanks and armored fighting vehicles (–70.3%).

Figure 22: Canadian merchandise exports to top partners in the Middle East ($ million and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

The top 3 export destinations accounted for 75.8% of Canada’s total exports to the region, while imports from the region were even more concentrated, with the top 3 partners representing 83.6% of total imports. In 2025, imports from the Middle East increased by 3.5% (+$172 million), following a sharp 10.6% decline in 2024 that was driven by lower prices and volumes of mineral fuels and oils. The rebound in 2025 was largely driven by higher imports from Saudi Arabia, the region’s largest source for imports, with an increase of $155 million (+7.5%), mainly reflecting greater imports of aluminum, now the second‑largest import product from that country, while mineral fuels and oils imports increased by 1.5%. Imports from Bahrain also increased significantly, rising by $127 million (+141.7%), driven by aluminum, and moving Bahrain from sixth to fourth place among Canada’s import partners in the region. A decline in imports from the United Arab Emirates partially offset this increase (-$123 million or -15.3%), mainly driven by declines in iron and steel and articles of iron or steel.

Figure 23: Canadian merchandise imports from top partners in the Middle East ($ million and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Trade with the Middle East: product view

Exports to the Middle East increased in 9 out of 11 product sectors (Figure 24). The largest increases were in electronic and electrical equipment and parts, as well as consumer goods (+$325 million and +$295 million, respectively), primarily destined for the United Arab Emirates, and in motor vehicles and parts exported (+$252 million or +34.0%) mainly to Israel. However, a decline in aircraft and other transportation equipment and parts (-$1.1 billion or -66.5%), mainly tanks, nearly offset all the growth in other products.

On the other hand, imports grew in 7 out of 11 product sectors. While metal ores and non-metallic minerals grew significantly in percentage terms (+131.6%), they represent only 0.1% of total imports. The largest increases by value were in basic and industrial chemical and plastic and rubber products (+$156 million or +40.0%) from Isreal and Qatar and metal and non-metallic mineral products (+$144 million or +25.9%) from Bahrain and Saudia Arabia.

Figure 24: Canadian merchandise trade with the Middle East, by product (% change, 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

2.7. Africa

Africa’s economy grew by 4.0% in 2025, up from 3.3% in 2024 (EIU, 2026). This improvement was broadly shared across country groups, including both resource‑rich and non‑resource‑rich economies, as well as fragile and low‑income states. South Africa—Africa’s largest economy— recorded a modest rebound in 2025, with growth reaching 1.1% after two consecutive years below 1.0%. This recovery was driven in part by stronger household consumption, supported by an improved monetary policy framework. The other 4 economies among Africa’s five largest each expanded by more than 4.0% in 2025, including Egypt (4.4%) and Nigeria (4.0%).

Canadian two‑way merchandise trade with the African continent grew by 22.5% in 2025, reaching a record high of $18.7 billion. This marked the largest annual increase since 2011 and follows a 6.4% decline in 2024.

After remaining broadly unchanged in 2024, Canadian exports to Africa rose sharply by 18.0% (+$1.0 billion) in 2025. Export growth was led by shipments to Nigeria (+$299 million or +56.0%), which moved from the fifth‑largest export destination in the region to third, driven mainly by motor vehicles and aircraft. Exports to Algeria, Canada’s largest export market on the continent, also increased significantly (+$228 million or +16.4%), reflecting higher volumes of wheat and meslin despite declining prices. These gains were partially offset by a sharp decline in exports to Botswana (–$117 million or –43.1%), primarily due to lower diamond exports resulting from both volume and price declines.

Figure 25: Canadian merchandise exports to top partners in Africa ($ million and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Imports represent the bulk of Canada’s trade with African countries, and which increased by 25.3% in 2025, reaching a record high following a decline in 2024. The rebound was driven primarily by a sharp rise of $1.0 billion in gold imports from South Africa, reflecting higher volumes and prices. Imports from Mauritania also rose significantly (+$325 million or +32.1%), likewise supported by increased gold shipments. Côte d’Ivoire further contributed to import growth (+$261 million or +33.0%), reflecting higher cocoa imports. These gains were partly offset by a steep decline in imports from the Democratic Republic of the Congo (–$167 million or –73.2%), which pushed the country from ninth to fifteenth place among Canada’s top import partners in the region.

Figure 26: Canadian merchandise imports from top partners in Africa ($ million and % change 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

Trade with Africa: product view

Exports to Africa increased in only 6 out of 11 product sectors (Figure 27).  The largest increase was in motor vehicles and parts, increasing by $391 million (+60.6%), mainly to Nigeria and Ghana. There was also an important increase in aircraft and other transportation equipment and parts (+$287 million or +93.0%), which is a volatile product sector, mainly to Egypt, Angola and Nigeria, and in farm, fishing and intermediate food products (+$206 million or +8.2%), the largest export category to the region, mainly to Algeria. A decline in metal ores and non-metallic minerals partly offset the rise (-$91 million or -9.9%).

At the same time, imports from Africa increased across 8 of the 11 product sectors, with the largest value gain recorded in metal and non‑metallic mineral products (+$1.0 billion or +59.8%), driven mainly by higher gold imports from South Africa and Mauritania. Imports of farm, fishing, and intermediate food products also contributed to overall growth (+$700 million or +40.5%), led primarily by shipments from Côte d’Ivoire, Ghana, and South Africa.

Figure 27: Canadian merchandise trade with Africa, by product (% change, 2025/2024)

Data: Statistics Canada Table 12-10-0171-01, customs-based, retrieved on 05-05-2026.
Source: Office of the Chief Economist, Global Affairs Canada.

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3. Appendix

Table 1: Canadian merchandise exports and imports by regions and selected top trade partners

Table 2: Canadian merchandise exports and imports by sectors