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The Canadian trade surplus widened to CAD 4.0 billion in January 2025, the largest since May 2022 and well above market expectations of CAD 1.3 billion. Canada's merchandise exports rose 5.5% to a record CAD 74.5 billion, while imports increased 2.3% to a record CAD 70.5 billion, marking the fourth consecutive monthly rise for both. Export growth was driven by motor vehicles and parts (+12.5%), energy products (+4.8%), and consumer goods (+7.8%), particularly pharmaceutical products (+41.5%). Exports to the US surged 7.5%, reaching a record CAD 58.2 billion, amid tariff threats, while imports from the US increased 4.7%, expanding the bilateral trade surplus to a record CAD 14.4 billion. Exports to other countries fell 1.0%, while imports decreased 1.4%. Meanwhile, imports were driven by higher imports of aircraft and other transportation equipment (+23.6%), electronic and electrical equipment (+5.8%), and energy products (+8.5%).