Canada’s Oil Exports to US Jumped in December
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Canada’s energy exports to the U.S. jumped at the end of last year, pushing the country’s trade surplus with its biggest customer to the highest in more than two years.
The surge in crude oil shipments is likely driven by a combination of higher prices, a weaker Canadian dollar and traders trying to front-run President Donald Trump’s threatened tariffs on goods the U.S. buys from Canada. After talks with Prime Minister Justin Trudeau on Feb. 3, Trump agreed to delay the start of his tariffs by a month.
With Canada’s trade imbalance with the U.S. driven entirely by oil exports, the country’s surplus with the U.S. widened in December, while its deficit with other trading partners grew. The jump in oil exports also helped Canada post an overall trade surplus for the first time in 10 months.
In December, Canada’s trade balance swung to a surplus of C$708 million ($496 million), from a $986 million a month prior, Statistics Canada said Feb. 5. Economists in a Bloomberg survey were expecting a C$1 billion surplus that month.
The trade surplus with the U.S. widened to C$11.3 billion in December, from C$8.2 billion previously. That’s the highest surplus since June 2022. Between October and December, exports to the U.S. jumped 11.8% — partially affected by the exchange rate, but a strong rise nonetheless.
Trump was elected Nov. 5 and first threatened 25% tariffs on Canada and Mexico on Nov. 25.
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In 2024, the combined value of Canada’s imports and exports of goods traded with the U.S. surpassed the C$1 trillion mark for a third straight year. The U.S. was the destination of 75.9% of Canada’s total exports and was the source of 62.2% of Canada’s total imports.
Canada’s goods trade surplus with the U.S. last year was C$102.3 billion, narrowing slightly from C$108.3 billion in 2023. On the other hand, Canada consistently posts a services trade deficit with the U.S., mainly because of travel services.
The country’s growth in annual imports outpaced the gain in exports from the rest of the world, widening its trade deficit to $C7.2 billion last year, from C$610 million in 2023.
