Monthly trade report: May 2026

ISSN 2819-408X

Highlights

• In May, Canada’s goods and services exports increased by 0.9% (see column “m/m” in Table 1), with strong gains in metal ores and non-metallic minerals and commercial services, while lower energy exports moderated the increase.
• Meanwhile, goods and services imports edged up 0.3%, despite goods being down 0.2% driven almost exclusively by lower purchases of gold as well as basic and semi finished iron or steel products, which reached its lowest level since December 2020.
• Canada’s goods exports to the U.S. increased 1.5% in May, the fourth consecutive increase, while imports from the U.S. fell 1.4%. In contrast, exports to non-U.S. markets edged down 0.3% in May while imports rose 1.5%.
• The movements in goods exports and imports were both driven by prices, with exports prices increasing 1.0% and import prices falling 0.6%. While the price for Western Canada Select crude oil decreased slightly in May, the Canadian dollar appreciated by a small amount.

Table 1: Canada’s trade performance – May 2026

Figure 1: Canada’s monthly trade performance

Data: Statistics Canada Tables 12-10-0011-01 and 12-10-0144-01. Balance of payments basis, seasonally adjusted.
Source: Office of the Chief Economist, Global Affairs Canada.

Industry view - exports

In May, exports growth was broad-based with gains in 7 of the 11 goods product categories and all services product categories. Goods exports achieved a record in May, increasing 0.9% to reach $77.1 billion. This growth was led by metal ores and non-metallic minerals (+16.1%). Within this product category, there was broad based growth, but exports of diamond and other non-metallic minerals was the main driver as it jumped 37.0% due to higher sulphur exports. The Strait of Hormuz conflict constrained sulphur shipments from that region, leading to higher prices and demand for sulphur from other sources.

Exports of metal and non-metallic mineral products were up 1.5% in May despite a drop of 4.1% in its largest sub-product category, unwrought gold, silver, and platinum groups metals. The overall increase was largely due to a 50.7% gain in the exports of unwrought aluminum and aluminum alloys, mainly to the European Union.

The total export increase was partially offset by decreased exports of aircraft and other transportation equipment (-8.5%), and energy products (-2.0%). The decrease in energy products comes after a 43.1% increase from February to April, a period which experienced a jump in oil prices due to the conflict in the Middle East. Exports of crude oil fell 5.4% in May due mainly to lower volumes.

Total service exports also grew 0.9% or $179.0 million with commercial services growing the most in value, up by $116.0 million or 0.9%, while transportation services and travel services grew 2.1% and 0.3% respectively.

Figure 2: Exports by industry and sector (monthly % change)

Note: Metal & non-metallic mineral products include intermediate or semi-finished products, while metal ores & non-metallic minerals include raw ores and minerals (e.g., iron ore, potash, stone).
Data: Statistics Canada Tables 12-10-0163-01 and 12-10-0144-01. Balance of payments basis, seasonally adjusted.
Source: Office of the Chief Economist, Global Affairs Canada.

Industry view - imports

Despite widespread imports growth in 3 out of 4 services product categories and 9 of 11 goods product categories, the value of goods imports decreased by 0.2% in May. Driving this decrease was a drop of 18.2% in the imports of metal and non-metallic mineral products as imports of gold, silver, and platinum group metals, and their alloys fell 33.0%. Also contributing to this product category’s decline was a 22.7% drop in imports of basic and semi-finished iron or steel products, which reached its lowest level since December 2020. Excluding metal and non-metallic mineral products, goods imports rose 1.9% in May.

Imports of consumer goods saw the largest dollar increase of $467.9 million (+3.5%) in May, helping partially offset the overall decrease. Within consumer goods, “miscellaneous goods and supplies” increased the most at 10.0%, which was mainly imports of batteries and battery chargers from China. Imports of pharmaceuticals and medicinal products also increased 6.4% with imports mainly coming from Germany, the U.S., and Spain. Other product categories that also experienced larger imports in May include metal ores and non-metallic minerals (+5.8%) due to imports of iron, copper, and nickel ores, and aircraft and other transportation equipment (+5.7%) due to imports of ships, locomotives, railway rolling stock and rapid transit equipment.

Total service imports rose 2.0%, driven by a 5.1% increase in transportation service imports, largely due to increased marine transportation of goods. Commercials services and travel services both grew 1.0% and 1.9% respectively.

Figure 3: Imports by industry and sector (monthly % change)

Note: Metal & non-metallic mineral products include intermediate or semi-finished products, while metal ores & non-metallic minerals include raw ores and minerals (e.g., iron ore, potash, stone).
Data: Statistics Canada Tables 12-10-0163-01 and 12-10-0144-01. Balance of payments basis, seasonally adjusted.
Source: Office of the Chief Economist, Global Affairs Canada.

Global markets

Goods exports to the U.S. continued to grow for the fourth month in a row, this time by 1.5% while imports from the U.S. fell 1.4%.

Goods exports to countries other than the U.S. edged down 0.3% in May after falling 4.0% in April. Driving this decrease was lower exports of unwrought gold to the United Kingdom while higher exports of aluminum and nuclear fuel to the Netherlands and higher exports of unwrought gold to Switzerland partially offset the decline.

After falling for two consecutive months, goods imports from countries other than the U.S. grew 1.5% in May. The main drivers of this increase were imports of passenger cars and light trucks from South Korea, and various product imports from China.

Figure 4: Goods trade by main markets (monthly % change)

Data: Statistics Canada Table 12-10-0011-01. Balance of payments basis, seasonally adjusted.
Source: Office of the Chief Economist, Global Affairs Canada.

Prices and volumes

May’s increase in goods exports was driven by prices rather than volumes. Exports prices grew 1.0% in May after falling in April as prices for metal ores and non-metallic minerals grew 8.4%. At the same time, exports volumes saw a small decline of 0.1% with export volumes of aircraft and other transportation equipment falling 8.4%.

The import decrease was also due to lower prices rather than volumes. Import prices fell 0.6% in May as metal and non-metallic mineral products fell 3.3%. Import volumes increased 0.4% in May despite large drops in energy products (-8.6%) and metal and non-metallic mineral products (-15.4%). Import volumes of basic and industrial chemical, plastic and rubber products saw the largest increase of 9.1%.

After two months of sharp price increases, Western Canada Select – the benchmark price for western Canadian oil – saw a moderate decline to US$83.14 in May from US$85.48 in April. Meanwhile, the value of the Canadian dollar appreciated 0.2% from 72.72 US¢ to 72.87 US¢ after two consecutive months of depreciation.

Figure 5: Goods trade (monthly % change in volume and price indices)

Data: Statistics Canada Table 12-10-0168-01. Balance of payments basis, seasonally adjusted.
Source: Office of the Chief Economist, Global Affairs Canada.

Figure 6: Exchange rate & oil prices

Data: Bank of Canada, Government of Alberta.
Source: Office of the Chief Economist, Global Affairs Canada.

What to watch

• As required by the CUSMA, a ministerial joint review meeting regarding the operation of the Agreement was held on July 1, 2026. At the meeting, Canada and Mexico both confirmed their desire for the CUSMA to be renewed for another 16-year period. The United States did not agree to renew the Agreement at this time and indicated that it would continue to engage with Canada and Mexico to address alleged shortcomings in the Agreement and its trade deficits with the two countries. As a result, the Parties will now move into an annual review process while the Agreement remains in force for another 10 years.
• After a subdued start to 2026, Canada’s economy showed renewed momentum in April, with real GDP increasing 0.5% month-over-month—the largest gain since July 2025. Trade-intensive industries, including resource extraction and manufacturing, were key contributors to growth.
• Oil prices have returned to near pre-conflict levels as concerns over disruptions to Middle East energy supplies and key shipping routes have eased. However, ongoing geopolitical uncertainty could contribute to renewed volatility in energy markets, with implications for the value of Canadian exports.

Next release: August 4, 2026.

Table 2: Trade by industry sector – May 2026

Table 3: Goods trade by main markets – May 2026