Canada’s December Export Surge Shrinks Trade Deficit, Led by Record Aircraft and Metal Shipments

Canada closed out the year with a strong boost in exports, driven largely by soaring aircraft deliveries and higher shipments of precious metals, according to newly released data from Statistics Canada.

Total exports climbed 2.6% in December, helping narrow the country’s trade deficit to $1.3 billion, down sharply from a revised $2.6 billion shortfall in November. The development reflects a surge in aerospace exports and rising global demand for Canadian gold and silver.

Aircraft and transportation equipment exports jumped 20.5 % to a record $3.5 billion in December. Statistics Canada noted that aircraft exports tend to spike toward the end of each quarter, but the December 2025 spike exceeded typical seasonal trends.

Higher deliveries of business jets to the United States played a central role in the increase. Exports of aircraft engines, parts and other aerospace components also rose by 15.4 per cent, largely due to increased engine shipments south of the border.

The strong performance comes amid heightened trade tensions with the United States. In January, U.S. President Donald Trump threatened to impose a 50 per cent tariff on Canadian aircraft exports unless Transport Canada certifies certain business jets manufactured by American company Gulfstream. He also suggested that several Bombardier jets could face decertification in the U.S., though industry analysts have questioned whether such a move would materialize.

While Statistics Canada did not identify individual companies, Bombardier remains Canada’s largest aerospace manufacturer and a major producer of business jets. The company recently reported business aircraft manufacturing revenues of $7.22 billion in 2025, up from $6.58 billion in 2024.

In its latest earnings statement, Bombardier acknowledged that regulatory changes pose potential risks. The company warned that failure to comply with requirements set by aviation authorities including Transport Canada, the U.S. Federal Aviation Administration and the European Aviation Safety Agency could lead to delivery delays, reduced sales, service interruptions and financial losses.

Beyond aerospace, exports of metal and non-metallic mineral products surged 18 per cent in December. The category includes unwrought gold, silver and platinum group metals, which saw strong demand from key trading partners such as the United Kingdom, the United States and Australia.

Notably, exports to countries outside the United States rose 5.8 per cent to an all-time high. Canada’s trade deficit with non-U.S. partners narrowed significantly, falling to $7 billion in December from $9 billion the previous month.

The data arrives as the federal government intensifies efforts to diversify Canada’s trade relationships. Since taking office last year, Prime Minister Mark Carney has pursued expanded economic ties beyond the U.S. In January, he travelled to China to negotiate what he described as a “new era” in bilateral relations. The talks resulted in both countries agreeing to reduce several tariffs, including Chinese duties on Canadian canola products and Canadian tariffs on Chinese-made electric vehicles.

Economists say December’s export performance provides a measure of resilience for Canada’s trade sector, even as geopolitical uncertainty and potential regulatory disputes continue to cast a shadow over key industries.