In brief, here are four perspectives on Canada/U.S. trade:
1. The U.S. is Canada’s main export market. In 2023, Canadian total exports were valued at C$965 billion, with 77 percent going to the U.S. No other nation accounts for more than 5 percent of Canada’s exports.1
2. Canada is the U.S.’s largest export market. However, only 18 percent of total U.S. exports go to Canada.2 These exports account for 44 percent of Canadian imports, which totaled C$978 billion in goods and services in 2023.1
3. Canada is relatively vulnerable to tariffs. When comparing trade as a percentage of GDP, Canada has greater exposure than the U.S. and China. However, Mexico and the E.U. are more vulnerable by this metric.1
4. The U.S. relies on Canada’s resources. Canada exports over 4 million barrels of oil per day to the U.S., with Midwest refiners importing 3 million barrels daily and lacking viable alternatives.3 Canada ranks 4th globally in natural resource value4 and is a key supplier of critical minerals, providing around 80 percent of U.S. zinc, tellurium, nickel, and vanadium.5
1.https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.canada-and-us-economics-.canada-and-us-decks.trade-stats–january-31–2025-.html
2.https://www.usitc.gov/research_and_analysis/tradeshifts/2023/us_trade_industry_sectors_and_selected_trading
3.https://www.bnnbloomberg.ca/investing/commodities/2025/02/03/eric-nuttall-says-the-us-has-no-alternative-to-replace-canadian-oil/
4.https://www.voronoiapp.com/natural-resources/Ranked-Top-Countries-by-Natural-Resource-Value-2885
5.https://economics.td.com/domains/economics.td.com/documents/reports/me/Setting_the_Record_Straight_on_Canada_US_Trade.pdf