The gap between Canadians’ imports and exports of goods expanded to $31.3 billion last year, making for the biggest merchandise trade deficit since 2020, Statistics Canada reported. Lower energy prices were a big factor; exports of unwrought gold shot up, or else the deficit would have been much bigger. A surplus grew in exchanges of services, however, with Canada selling $4.4 billion more services abroad than it bought. (The Logic)

Talking point: Canada imported fewer goods from the United States (by 2.9 per cent) and exported fewer there (by 5.8 per cent) in 2025—so Canada was still a net exporter to the U.S. last year, but by a smaller margin than in 2024. To the extent that U.S. trade deficits preoccupy President Donald Trump, that might mollify him somewhat, though the gap is still more than $81 billion. Meanwhile, Canada’s trade with other countries grew on both sides of the ledger, with exports rising 17.2 per cent and imports increasing 12.4 per cent.