Trade Surplus Surged in January as US Threatened Tariffs

Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on April 25, 2024. The Canadian Press/Nathan Denette

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.