The Globe and Mail reports in its Friday edition that Canada's merchandise trade deficit rose to $3.6-billion in January, as exports of motor vehicles and parts hit their lowest since September, 2021, according to Statistics Canada. A Canadian Press dispatch to The Globe reports that this compares with a $1.3-billion deficit in December. CIBC economist Katherine Judge said the deficit widened dramatically in January, but the details of the report were a little less negative than the headline suggested. Ms. Judge wrote: "While the data adds to evidence that the Canadian economy started 2026 on shaky ground, real exports are likely to make up some lost ground ahead as auto plant retooling ends. Beyond that, however, the renegotiation of CUSMA remains important in order to maintain the U.S. tariff exemption, as sectors hit by U.S. tariffs are still seeing depressed export volumes, with little evidence of diversification being seen." Statscan said total exports fell 4.7 per cent in January to $62.5-billion, the largest percentage decline since April, 2025. Meanwhile, total imports in January fell 1.1 per cent to $66.1-billion as imports of motor vehicles and parts decreased 4.5 per cent.