Royal Bank of Canada economist Salim Zanzana notes that higher Gold prices and expanded access to foreign markets helped cushion Canada’s exports in the face of U.S. tariff pressures. He explains that nominal exports fell only slightly in 2025, with stronger non-U.S. demand, especially from the U.K., offsetting weaker U.S. trade flows driven by tariffs.

Gold strength offsets tariff headwinds

"Diversifying exports outside of the United States has emerged as a critical offset to tariff pressures for Canada with higher gold exports exaggerating gains from foreign markets Canadian exports fared better than expected last year, declining by just 0.8% year-over-year on a nominal basis."

"A rise in exports to non-U.S. markets, particularly the U.K., emerged as a counterbalance to weaker U.S. exports due to tariffs."

"The increase had more to do with a price surge in gold exports, and the new TMX pipeline increasing export capacity outside of North America."

"Canada experienced a more significant 2% decrease in overall merchandise exports last year when adjusting for price changes."

"Tariff pressures weighed more heavily on manufacturing-intensive provinces like Quebec and Ontario, while energy-producing and some agricultural exporting provinces benefitted more from gains outside the U.S."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)