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Merchandise trade deficit: $1.3B (December) → $3.6B (January)
Combined goods and services deficit: $860M (December) → $3.8B (January)
Total exports: $82.3B (goods + services, month-over-month -3.9%)
Total imports: $86.0B (goods + services, month-over-month -0.4%) Merchandise exports: month-over-month -4.7%
Automotive and parts: -21.2% → $5.4B (lowest since September 2021)
Export declines significantly outpaced import declines Merchandise imports: month-over-month -1.1% Merchandise trade surplus with the U.S.: $5.7B (December) → $5.4B (January), a modest narrowing
Canada maintains a trade surplus with the United States Merchandise trade deficit with non-U.S. countries: $7.0B (December) → $9.0B (January), a significant widening
Deficits with Asia, Europe, and other regions expanded South Korea is Canada's 8th largest trading partner and 6th largest merchandise export market (2025)
Canadian merchandise exports to South Korea in 2025: $7.1B
Bilateral Canada–Korea merchandise trade: $24.5B in 2024, doubling since 2014
99% of Canadian exports enter South Korea tariff-free
H1 2025: Canadian exports to South Korea reached C$8.2B (already surpassing full-year 2024 figures), with imports from South Korea at C$3.7B
Key export categories: mineral resources 57%, agricultural products (meat and seafood) 12%, machinery, electrical equipment, and lumber January merchandise trade deficit: $3.6B (widened from $1.3B in December)
January total trade deficit (goods + services): $3.8B
Merchandise export decline: -4.7%
Merchandise import decline: -1.1%
Automotive/parts exports: $5.4B (-21.2%, lowest since September 2021)
Canada–U.S. trade surplus: $5.4B (narrowed from $5.7B in December)
Non-U.S. trade deficit: $9.0B (widened from $7.0B in December)
Canada–Korea bilateral trade (2024): $24.5B
Canadian exports to South Korea (2025): $7.1B
Tariff-free rate on Canadian exports to South Korea: 99% Canada's widening trade deficit — particularly the sharp deterioration in non-U.S. trade — signals a growing urgency to diversify export markets beyond the United States. South Korea already ranks as Canada's 6th largest merchandise export market, and the April 2026 Team Canada Trade Mission to Seoul represents a direct and timely opportunity to deepen Canada–Korea economic cooperation.
The steep decline in automotive and parts exports reflects the tangible impact of U.S. tariffs and reinforces the need for Canadian exporters to diversify. Rise Partners is well-positioned to pursue consulting opportunities around automotive supply chain restructuring leveraging the Canada–Korea Free Trade Agreement.
Canadian exports to South Korea reached C$8.2B in H1 2025 alone — already exceeding full-year 2024 performance — confirming that Canada–Korea trade is accelerating rapidly. There is a strategic imperative to broaden the export mix beyond its current concentration in mineral resources (57%) and agricultural products (12%) toward technology and services sectors.
Economy February 5, 2026 · 5 min read
Canada International Merchandise Trade – January 2026 Trade Balance Data
캐나다 국제 상품무역 - 2026년 1월 무역수지 데이터
Key Takeaway
Canada's merchandise trade deficit widened sharply in January 2026, expanding from $1.3B in December to $3.6B. Exports declined 4.7% while imports fell by only 1.1%. Automotive and parts exports plunged 21.2% to $5.4B — the lowest level since September 2021 — and the trade deficit with non-U.S. countries widened from $7.0B to $9.0B.
# Canada International Merchandise Trade – January 2026 Trade Balance Data
Key Summary
Canada's merchandise trade deficit widened sharply in January 2026, expanding from $1.3B in December to $3.6B. Exports declined 4.7% while imports fell by a more modest 1.1%. Automotive and parts exports plunged 21.2% to $5.4B — the lowest level since September 2021 — while the trade deficit with non-U.S. countries widened from $7.0B to $9.0B.Details
Statistics Canada released January 2026 international merchandise trade data on March 12, 2026 ([StatCan Daily Release](https://www150.statcan.gc.ca/n1/daily-quotidien/260312/dq260312a-eng.htm)).Overall Trade Balance
Export Trends
Import Trends
Canada–U.S. Trade
Non-U.S. Trade
Canada–Korea Trade Overview
According to Export Development Canada ([EDC South Korea](https://www.edc.ca/en/article/doing-business-south-korea.html)):Team Canada Trade Mission
A Team Canada Trade Mission to South Korea is scheduled for April 2026 ([Trade Mission](https://www.tradecommissioner.gc.ca/en/trade-events-training/2026/04/team-canada-trade-mission-republic-korea.html)), supporting Canada's Indo-Pacific Strategy and the government's target to double non-U.S. exports within a decade.Key Figures
Rise Partners Implications
--- Source: https://www150.statcan.gc.ca/n1/daily-quotidien/260312/dq260312a-eng.htm
Implications
- Canada's widening trade deficit and the sharp deterioration in non-U.S. trade signal a growing urgency to diversify export markets beyond the United States. South Korea already ranks as Canada's 6th largest merchandise export market, and the April 2026 Team Canada Trade Mission to Seoul represents a direct and timely opportunity to deepen Canada–Korea economic cooperation.