Canada’s trade balance deteriorated in October, according to the Wall Street Journal, marking the country’s eighth deficit in the first 10 months of the year as the nation works to improve domestic investment and lessen the country’s reliance on trade with the United States.

Canada saw a merchandise-trade shortfall of 583 million Canadian dollars, equal to $421 million USD, according to Statistics Canada, the country’s national statistical office. The number is far from the C$1.5 billion gap anticipated, according to the Wall Street Journal, but a reversal from the C$243 million surplus seen in September.

The value of Canadian goods rose 2.1% from the previous month, reaching C$65.61 billion, with the second month of positive, albeit slight, growth. The growth in exports is largely attributed to the shipments of gold, according to the Wall Street Journal, which were particularly volatile in 2025 as the price soared as central banks bought the metal and investors sought out safer investments.

Canada’s largest export, energy, saw the biggest drag in investments. Exports of crude oil and bitumen dropped as prices fell and refineries in the United States shut down, per the Wall Street Journal, but increased crude-oil exports to China and gold shipments to the United Kingdom contributed to a 15.6% surge in overall exports to countries other than the United States. “There were some tentative signs of exporters reducing their reliance on the U.S.,” said Alexandra Brown, economist at Capital Economics, per the Wall Street Journal.

Domestically the nation is grappling with a rising unemployment rate. Canada’s economy gained a net 8,200 jobs in December, according to Reuters, with the jobless rate rising 6.8% as more Canadians look for work. Goods producing sectors saw strong growth, with a net 8,000 jobs, largely in construction. The services sector increased by a net 100 jobs, led by strong growth in healthcare and social assistance.

The more meager growth in the job market follows three months of large gains last year, with 181,000 new jobs added from September through November, according to Reuters.

“With more people once again looking for work, today’s unemployment rate suggests that plenty of slack remains in the labor market,” said Andrew Grantham, a senior economist at CIBC Capital Markets, per Reuters.

According to FCIB’s Credit and Collections Survey, credit managers with customers in Canada are finding that payment delays are largely staying the same (55%) with some respondents seeing an increase (25%). Customers in Canada are 15 days beyond terms on average. The most common causes of delays are billing disputes (46%), customer payment policy (34%) and cash flow issues (30%).

“Do not accept checks,” one respondent advised. “The transit time is too long, hence the delays.”

“It helps to have a French speaker on standby,” another respondent wrote.