Canada’s economy was in a trade surplus for the third straight month in May and exports were up for the fourth month, Statistics Canada reported Tuesday.
This three-month stretch was in the course of the same period when the Iran war sent shockwaves through global supply chains for key materials and resources, which seems to have benefited Canada’s export economy.
Exports in May were up overall by 0.9 per cent to a record $77.1 billion, which marked the fourth straight monthly increase. A part of this spike in export values was attributed to higher prices for resources like oil amid the Iran war.
“With the most recent merchandise trade numbers, Canada’s export story is becoming more balanced,” said economist Jasleen Trehan on the Business Data Lab and Canadian Chamber of Commerce in a press release.
“The subsequent challenge is ensuring this momentum is driven by stronger export volumes, not only higher prices. That’s what is going to determine whether today’s gains translate into long-term economic growth or not.”
The Iran war brought container ship traffic near the Strait of Hormuz region to a near standstill as Iran threatened to attack any ships attempting to go through the narrow shipping channel without permission in the course of the conflict, jeopardizing a few fifth of the world’s oil and other resource supplies.
Get every day National news
Get every day Canada news delivered to your inbox so you will never miss the day’s top stories.
One among those other resources was sulphur, Statistics Canada says, and Canada’s exports of sulphur products, together with diamonds and other non-metallic minerals, were up 37 per cent in May.
Related Videos
Demand for Canada’s crude oil from international markets increased significantly in the course of the first three months of the Iran war, but that modified in May when Statistics Canada said crude oil exports dropped 5.4 per cent, after a rise of 43 per cent from February through April.
Crude oil prices were riding a roller-coaster in the course of the Iran war, so the agency says that price volatility means it may have to revise a few of its data down the road.
There was still strong global demand for other Canadian energy resources in May, which Canada’s economy benefited from. There was a 55 per cent spike in demand for nuclear fuel, while natural gas exports increased 7.4 per cent and refined petroleum energy products were up by 4.6 per cent.
Canada also exported loads of aluminum products in May, as U.S. President Donald Trump’s sectoral tariffs, including on Canada’s steel and aluminum imports, continued to bite. There’s currently a U.S. tariff of as much as 50 per cent on Canadian core aluminum products, while some derivatives like auto parts may even see less of a tariff.
Prime Minister Mark Carney vowed to double Canada’s exports to countries aside from the U.S. over the following decade, and Tuesday’s report shows that could be working.
Statistics Canada says there was a greater than 50 per cent increase in exports of aluminum products in May in comparison with April, nearly all of which were sent to the Netherlands, Italy and Greece. In total, those aluminum exports were valued at $1.2 billion, which was the very best for the reason that record seen in May 2022.
Although Canada exported more goods to international partners in May in comparison with the previous month, exports to the U.S. still increased by 1.5 per cent in May, which marked the fourth consecutive increase. At the identical time, imports from the U.S. fell by 1.4 per cent, which contributed to a wider trade surplus with the U.S. totalling $11.6 billion within the month.
This was the most important trade surplus with the U.S. for the reason that record high seen in January 2025, the agency says.
© 2026 Global News, a division of Corus Entertainment Inc.