Statistics Canada released the trade data on Wednesday. Canada's trade deficit widened to C$3.41 billion in March from a deficit of C$2.47 billion in February. February's figure was revised down from a deficit of C$1.91 billion.
Analysts had expected a trade deficit of C$1.4 billion.
The rise in deficit was driven by a drop in exports. Exports slid 4.8% in March.
Exports of consumer goods plunged 4.6% in March, exports of metal and non-metallic mineral products dropped by 5.4%, while exports of motor vehicles and parts were down 6.0%.
Imports fell 2.4% in March.
Imports of energy products jumped by 13.5% in March, imports of consumer goods decreased by 4.6%, while imports of aircraft and other transportation equipment and parts fell 20.4%.