In December, Canada’s merchandise exports grew by 4.9%, while imports increased by 2.3%. This shift turned the country’s trade balance from a deficit of $986 million in November to a surplus of $708 million in December—the first surplus in nearly a year. This according to numbers just released by Statistics Canada.1
The depreciation of the Canadian dollar influenced trade values, with exports rising 3.0% and imports increasing 0.4% when expressed in US dollars. Additionally, the implementation of the CBSA’s CARM initiative led to the inclusion of estimated import values for a more accurate picture of trade activity.
Strong Growth in Exports, Led by Energy and Metals
Total exports increased by 4.9% in December, marking the largest monthly gain since February 2024, with eight out of eleven product categories posting growth. In real terms, exports rose 2.6%. Energy products saw the biggest surge, up 9.5%, driven by a stable price environment for crude oil. Metal and non-metallic mineral product exports also reached a record high of $10 billion, with significant increases in nickel, scrap metal, and unwrought gold. Auto exports grew by 3.9%, despite overall declines in vehicle production throughout the year.
Imports Rise, Consumer Goods Lead Growth
Imports rose 2.3% in December, following a 2.8% increase in November. Consumer goods, metal and non-metallic mineral products, and industrial machinery were the main contributors to the increase. In real terms, import volumes edged up by 0.2%. Due to delays in import data collection caused by the CARM initiative, Statistics Canada incorporated estimated values for the October–December period, which may result in future revisions. The Canadian dollar’s depreciation also played a role in the increased valuation of imports.
Trade Surplus with U.S. Expands, Deficit with Other Countries Grows
Canada’s trade surplus with the U.S. widened from $8.2 billion in November to $11.3 billion in December, as exports to the U.S. rose 5.0% while imports declined by 1.5%. The U.S. remained Canada’s top trade partner, accounting for 75.9% of exports and 62.2% of imports in 2024. Meanwhile, Canada’s trade deficit with other countries grew from $9.2 billion to $10.6 billion, as exports to non-U.S. markets rebounded 4.9% following a sharp decline in November, and imports surged by 9.0%. Major export gains were seen in shipments to Germany, Norway, Japan, and Switzerland.
Industry Trade Breakdown
Farm, fishing and intermediate food products
Exports $5.2B, up 9.4%
Imports $2.8B, up 14.5%
Basic and industrial chemical, plastic and rubber products
Exports $3.8B, up 7.5%
Imports $5.4B, up 11.2%
Forestry products and building and packaging materials
Exports $4.2B, up 4.2%
Imports $3.1B, up 10.2%
Industrial machinery, equipment and parts
Exports $4.4B, up 6.4%
Imports $7.6B, up 0.2%
Electronic and electrical equipment and parts
Exports $3B, up 10.9%
Imports $7.3B, up 8.2%
Consumer goods
Exports $8.3B, up 19.5%
Imports $14.1B, up 6.2%
Flexible Solutions During Trade Disruption
Although Canada has won a temporary reprieve from U.S. tariffs, economic uncertainty persists. This remains a significant concern for Canadian Alliance Terminals (CAT) and its clients. These clients include domestic manufacturers that sell a large portion of their products in the U.S. and international customers shipping to Vancouver before redirecting part of their goods south. CAT’s expertise and extensive network allow us to provide tailored solutions during such turbulent times.
“We’re working with our customers to provide strategic solutions,” says Seyed Behnejad, Vice President and General Manager of Warehousing at CAT. “We have an extensive network in Western Canada, Eastern Canada, and the United States that provides us with great flexibility.”2
Our robust logistics network enables alternative shipping routes, minimizing disruptions. Additionally, our warehousing solutions mitigate delays and reduce risks in the supply chain. By providing expert guidance on navigating regulatory changes and trade policies, CAT ensures seamless operations for clients even in challenging trade environments.
The Impact of Artificial Intelligence on Supply Chain Management
Artificial Intelligence (AI) is transforming the supply chain industry, and Seyed Behnejad is enthusiastic about its potential. “Coming from a tech background, it’s a subject that I’m very passionate about,” he explains. “AI is impacting many processes in the supply chain industry and creating efficiencies.”
AI’s most significant applications include:
- Prediction Models: AI analyzes historical data on customer behaviour, locations, and SKUs to create smarter, more sophisticated models, enabling better decisions.
- Resource Optimization: Enhanced resource allocation minimizes waste and boosts efficiency.
- Marketing and Partnerships: AI-driven insights improve marketing strategies and foster stronger partnerships.
- Customer Service: AI-powered tools deliver more accurate, timely service.
- Operational Efficiency: Automation streamlines internal administration.
“AI allows us to create smarter prediction models, ultimately leading to better decisions,” adds Behnejad. “These advancements are redefining supply chain management, creating new opportunities for growth and innovation.”
Key Initiatives for CAT in 2025
Canadian Alliance Terminals is dedicated to innovation and improvement. Here are our 2025 priorities:
- Enhancing Customer Service
We’re focusing on efficiency, accuracy, and speed to elevate the customer experience.
- Growing E-Commerce
Our e-commerce program—featuring same-day deliveries and pick-and-pack services—is expanding. We’re also restructuring courier and parcel partnerships for faster deliveries.
- Increasing Transparency
By integrating advanced technologies, we’re providing greater operational transparency for our clients.
- Advancing Sustainability
Sustainability remains a core value. We’re investing in programs to minimize environmental impact while increasing transparency in sustainability reporting.
- Prioritizing Cybersecurity
With a multi-layered defense system, robust procedures, and a focus on education, cybersecurity is a top priority. Staff and customers alike are equipped to navigate emerging threats.
These initiatives reflect CAT’s commitment to meeting industry challenges and delivering exceptional value to clients in 2025 and beyond.
Cited Sources
1 Government of Canada, Statistics Canada. “Canadian International Merchandise Trade, December 2024.” The Daily – , February 5, 2025. https://www150.statcan.gc.ca/n1/daily-quotidien/250205/dq250205a-eng.htm.
2 Direct communication with Seyed Behnejad