March US trade deficit sees a modest increase, Canada trade balance moves into surplus on higher export prices
March’s US trade deficit of $60.3bn was a 3-month high and up from $57.8bn in February. Exports rose by 2.0% and imports rise by 0.3%, both extending on gains of over 4% in February.
Goods exports rose by 3.1% compared to 2.5% in the advance data and goods imports rose by 3.3% versus 3.1% in the advance data. Service exports fell by 0.3% while service imports fell by 2.3% lifting the services surplus to a 6-month high. This is consistent with the assumptions in the advance GDP report. Within the service imports detail the dip was led by a reversal of a February gain in charges for the use of intellectual property.
The bulk of the exports gain came from energy products in particular crude oil while food was also form, soybeans in particular. Nonmonetary gold, recently a source of strength, saw a modest correction lower. The imports gain was more balanced though passenger cars were particularly strong.
Canada recorded a surprise trade surplus in March of C$1.8bn. up from a February deficit of C$5.1bn and the first surplus since September 2025. Nominal exports rose by 8.5% while imports fell by 1.6%.
Prices had a dramatic impact on exports, with exports falling by 0.3% in real terms. Nominal export gains were led by energy products at 15.6% and metal and non-metallic monetary products at 24.0%. Imports fell by 2.0% in real terms.