Trade between Canada and the U.S. is a crucial part of each country’s economy. The U.S. total goods trade with Canada was estimated at more than US$760 billion in 2024, with U.S. goods imports from Canada sitting at US$410 billion. This is partly due to their proximity and the size of their respective economies, as well as similar consumer preferences and level of development.
Here are some of the key goods that are traded between the two countries:
What does Canada export to the U.S.
- Energy products: This includes oil, natural gas, and uranium. Both countries rely on each other as a main source of imported energy, but Canada also sends clean electricity south of the border.
- Motor vehicles and parts: The Canadian auto industry relies heavily on the U.S. when it comes to both fully-built cars and auto parts like engines, transmissions and electrical components.
- Consumer goods: This includes anything from cereal, flour, milk preparations and products, furniture, candles, toys, books and glassware.
- Forestry products and building and packaging materials: Key exports include softwood lumber, gypsum (used for drywall), and pulp. Forestry products account for 7.5 per cent of Canada’s total exports, but only 1.2 per of its GDP. The industry is well known for its ongoing U.S.-Canada softwood lumber dispute, which dates back to 1982. Despite four agreements and many rounds of negotiations and fees, the issue persists.
- Basic and industrial chemical, plastic and rubber products: These include dyes and petrochemicals, lubricants, fertilizers, plastic and rubber finished products.
- Metal and non-metallic mineral products: Leading exports include iron and steel, aluminum, gold, potash and copper. Canada is also a key supplier of critical minerals to the United States, including tellurium, niobium and uranium.
(As of 2023, Source: StatCan)
What does the U.S. export to Canada
- Consumer goods: Canada imports a variety of consumer goods from the U.S., from prepared food and snacks to clothing, personal care items, toys and sports equipment.
- Motor vehicles and parts: This includes cars built in the U.S. and parts shipped to Canadian plants, like transmissions. The auto industry is a crucial component of trade between the two countries, since the 1965 Auto Pact sought to build a singular North American auto industry. That was later replaced by CUSMA, but an important relationship remains.
- Electrical, electronic equipment: Electrical imports can range from household appliances like TVs, toasters, dishwashers and computers to iPhones, ceiling fans or light bulbs – as well as components and parts for any of these.
- Machinery and mechanical appliances: This involves more heavy-duty machinery like bulldozers and excavators, as well as industrial and electrical machinery (turbines, generators, transformers, liquid pumps and elevators) or harvesting tractors.
- Metals and minerals: Canada’s mineral imports from the United States include iron and steel, gold and aluminum. Canadian mineral imports to the U.S. amounted to $57.3 billion in 2023.
- Agri-food products: Baked goods, cat or dog food, grain alcohol, food preparations and corn all fall under this category. The U.S., meanwhile, imports baked goods, canola oil, beef and pork, chocolate and frozen fries and other prepared potatoes from Canada, for a total of $72.6 billion in agriculture and agri-food trade (in 2023).
(Source: Foreign Affairs Cd)
