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flag Canada's trade deficit grew to $3.6 billion in January 2026, mainly due to a sharp drop in auto exports.

flag Canada's merchandise trade deficit widened to $3.6 billion in January 2026, driven by a 4.7% drop in exports, the largest monthly decline since April 2025. flag A sharp 21.2% fall in motor vehicle and parts exports—down to $5.4 billion, the lowest since September 2021—was the primary factor, largely due to seasonal production stoppages for model changes. flag Passenger car and light truck exports dropped 32.5%. flag While imports declined slightly, the export shortfall widened the deficit, with overall trade activity weakening across sectors.

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