Canada imports plunge as chip shortages disrupt auto trade

Canada’s trade balance swung into surplus, as imports plunged due to supply disruptions in the auto industry.

The country posted an unexpected merchandise trade surplus of $594 million (US$492 million) in April from a revised deficit of $1.35 billion a month earlier, Statistics Canada reported Tuesday in Ottawa. Economists were anticipating a deficit of $800 million for the month.

The numbers reflect a sharp drop in imports, which were down 4.7 per cent. That was led by a 22 per cent decline in imports of motor vehicles, reflecting production shutdowns in the auto industry because of a shortage of semiconductors.

Excluding cars, imports were down 1.3 per cent.

Exports fell one per cent in April, also reflecting the auto assembly disruptions.