Canada’s merchandise trade surplus in January rose to its highest level since May 2022, as both exports and imports surged in the face of tariff threats by the United States.
TD Bank economist Rishi Sondhi says the strength in exports shown in January reflected companies attempting to stockpile inventories ahead of the imposition of tariffs.
“This dynamic could lift exports in February as well but may fade thereafter,” Sondhi wrote in a note to clients.
“Indeed, the negative impact on U.S.-bound shipments will be one of the primary channels through which Canada’s economy is harmed. A weak Canadian dollar could provide some offset, although would add to tariff-related inflation pressures for Canadians.”…