Minnesota goods exports totaled $5.8 billion in the first quarter of 2026, an 8% drop, or $504 million less, than the same period last year, according to data released by the Minnesota Department of Employment and Economic Development (DEED).
The decline was driven largely by a $628 million drop in mineral fuel and oil exports, including motor fuel and industrial oils, to Canada, a trend that has persisted since the second quarter of 2025 and that officials linked in part to uncertainty tied to federal trade actions. Excluding that category, the state’s other exports actually grew 2% during the quarter.
“It’s disappointing to see declining mineral fuel and oil exports to Canada dragged down our overall numbers again,” DEED Commissioner Matt Varilek said. “But I’m encouraged that the net results for all other categories were positive, despite the extraordinary uncertainties impacting the global trade environment, including erratic tariffs and strained relationships with U.S. trading partners.”
Overall exports to North America fell 23% for the quarter, with a 41% drop to Canada far outweighing an 18% gain to Mexico. Asian markets slipped 3% overall, including a 23% decline in exports to China. European markets grew $1.4 billion, up 11%, led by gains to the United Kingdom, Turkey, Germany and Poland. Exports also rose to the Caribbean, Central America and South America (up 10%), Africa (up 20%) and the Australia-Pacific region (up 5%).
Electrical equipment remained one of the state’s top export categories, topping $1 billion for the quarter with a 26% increase. Oil seeds and miscellaneous grain exports rose 35% and fertilizer exports rose 45%. Other categories posting gains included food by-products (up 9%), prepared cereal and flour products (up 22%), cereals (up 19%) and aluminum (up 34%). Ores, slag and ash exports fell 82% and sugar and confectionary exports dropped 62%.
In June, Governor Tim Walz and Varilek traveled to Austria to promote Minnesota business opportunities, meeting with executives at Rosenbauer, a past Governor’s International Trade Award winner, as well as with members of the Federation of Austrian Industries and at a pitch event hosted by the American Chamber of Commerce in Austria. Over the past eight years, the Walz-Flanagan administration and the Minnesota Trade Office at DEED have led 12 trade missions, working with companies including Philips in the Netherlands, Daikin, Yanmar, MGK, Nidec and Takeda in Japan, Broekema and SICK in Germany, Uponor in Switzerland, and Rolls-Royce in England.
“The Minnesota Trade Office supports our state’s exporters in identifying international growth opportunities and establishing new connections in foreign markets,” said Gabrielle Gerbaud, executive director of the Minnesota Trade Office. Gerbaud said the office also worked with companies pursuing foreign investment in Minnesota at the SelectUSA Investment Summit and promoted the state’s life sciences and health sector at the BIO International Convention in San Diego.
