CANADA NEEDS THE U.S. AND THE U.S. ALSO NEEDS CANADA. HERE’S WHY.

When people talk about Canada–U.S. trade, it can sometimes sound like one country benefits while the other loses. But the reality is much more complicated.

WHAT DOES THE U.S. GET FROM CANADA?
Canada supplies the United States with some very important products and resources, including:

▪︎ Energy — Canada is the largest foreign supplier of energy to the U.S., including crude oil and other energy products.

▪︎ Automotive products — Cars and parts cross the border multiple times as manufacturers rely on integrated North American supply chains.

▪︎ Agricultural and food products — Canada supplies the U.S. with products ranging from agricultural goods to food ingredients.

▪︎ Minerals and raw materials — Canadian resources support American manufacturing and other industries.

More than 79% of U.S. imports from Canada are used as inputs for further manufacturing, meaning Canadian products often become part of American-made products.

WHAT DOES CANADA GET FROM THE UNITED STATES?

Canada also depends heavily on American goods, services and investment. The U.S. supplies Canada with:

▪︎ Vehicles and automotive parts
▪︎ Machinery and industrial equipment
▪︎ Electronics and technology
▪︎ Food and agricultural products
▪︎ Consumer goods
▪︎ Business and financial services

In 2025, Canada imported about C$361.7 billion worth of goods from the United States, while exporting about C$564.6 billion in goods to the U.S.

And it’s bigger than just buying and selling products. Canadian and American businesses are deeply connected through manufacturing, energy, agriculture, transportation, technology and services.

Canada benefits from having a huge nearby market for its products. The United States benefits from having a reliable neighbour supplying energy, resources, manufactured inputs and other goods.

That’s why Canada and the U.S. aren’t simply competitors. They are also deeply interconnected economic partners.

The trade relationship has faced serious tensions and tariffs, but the numbers show why disruptions can affect businesses, workers and consumers on both sides of the border.

In your opinion, which country would feel the bigger economic impact if Canada–U.S. trade were severely disrupted; Canada, the United States, or both?
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