Canada's merchandise trade deficit totalled $1.9 billion in January, narrowing from a $3.1 billion deficit in December. Imports decreased 4.3%, mainly due to lower imports of industrial machinery, equipment and parts. Exports fell 2.1%, primarily on fewer exports of passenger cars and light trucks.

Following a record high in December, total imports were down 4.3% in January to $47.7 billion, with declines in all commodity sections. Industrial machinery, equipment and parts, consumer goods, as well as electronic and electrical equipment and parts were the main contributors to the decline in January. Year over year, imports increased 2.0%.