Canada's trade surplus with the US widened in April

Chip Somodevilla/Getty Images

Canadian Prime Minister Justin Trudeau and President Donald Trump

• The Canadian dollar rallied against the US dollar Wednesday.
• Canada trade surplus with the US widened in April.
• Follow the loonie in real time here.

The loonie climbed against the dollar early Wednesday after data showed Canada's trade surplus with the US widened in April.

The loonie was up 0.75% versus the dollar at 9:15 a.m. ET.

The trade surplus Canada runs with the US widened to C$3.6 billion from C$2 billion in April, Statistics Canada said Wednesday. The Canada-US merchandise trade surplus had hit to its lowest level in two years the month before, after falling for five straight months.

Both the US and Canada saw record exports in April. Total Canadian exports rose 1.6% to a record C$146 billion, while imports in the country fell 2.5% to C$50.5 billion. Total US exports rose 0.3% to $211.2 billion and imports fell slightly, narrowing the trade gap 2.1% to its lowest level since September.

Negotiations for a new North American trade deal have seen little progress recently. Analysts predict negotiations could drag into 2019 after the three countries missed a deadline last month set by House Speaker Paul Ryan.

Washington imposed hefty steel and aluminum tariffs on Ottawa last week, prompting swift retaliatory responses from Prime Minister Justin Trudeau. Trudeau proposed duties on $12.8 billion worth of US goods, including maple sugar and syrup.