Canada has consistently been one of the top two trading partners for the United States. The two countries share a long history of supply chain integration, including especially in the automotive and textile industries and the energy sector. Most recently, in 2024, Canada was the top destination for U.S. exports and the third-largest source of U.S. imports. Canada exported over three-quarters of its goods to the United States and imported almost half of its goods from the United States.
The United States’ leading exports to Canada are vehicles, machinery, and energy products, together with over $30 billion in agricultural products, including bakery goods, cereals and pasta, fresh vegetables and fruit, and ethanol. Canada’s leading exports to the United States are energy products and vehicles, together with over $40 billion in agricultural products, including baked goods, cereals and pasta, vegetable oils, beef and beef products, processed fruit and vegetables, and fresh vegetables.
Canada Trade Summary
U.S. goods and services trade with Canada totaled an estimated $909.1 billion in 2024, down .5 percent ($4.8 billion) from 2023.
U.S. total goods trade with Canada were an estimated $761.8 billion in 2024. U.S. goods exports to Canada in 2024 were $349.9 billion, down 1.3 percent ($4.5 billion) from 2023. U.S. goods imports from Canada in 2024 totaled $411.9 billion, down 1.5 percent ($6.1 billion) from 2023. The U.S. goods trade deficit with Canada was $62.0 billion in 2024, a 2.6 percent decrease ($1.6 billion) over 2023.
U.S. total services trade (exports plus imports) with Canada totaled an estimated $147.3 billion in 2024. U.S. services exports to Canada in 2024 were $90.3 billion, up 4.5 percent ($3.9 billion) from 2023. U.S. services imports from Canada in 2024 were $57.0 billion, up 3.6 percent ($2.0 billion) from 2023. The U.S. services trade surplus with Canada was $33.2 billion in 2024, a 6.1 percent increase ($1.9 billion) over 2023.
Free Trade Agreement
The United States and Canada, together with Mexico, are parties to the United States-Mexico-Canada Agreement (USMCA), which entered into force on July 1, 2020. The USMCA, which replaced the North America Free Trade Agreement (NAFTA), undergirds the nearly $2 trillion in U.S. goods and services trade within the region, with comprehensive rules that are subject to dispute settlement. The USMCA also includes several provisions to support trilateral cooperation against non-market distortions.
Other Trade and Investment Instruments
Prior to the USMCA, the United States, Canada, and Mexico were Parties to the North American Free Trade Agreement (NAFTA), which went into effect in 1994 and was replaced by the USMCA.
Prior to the NAFTA, the United States and Canada were parties to the Canada-United States Free Trade Agreement (CUSFTA), which went into effect in 1989, and was superseded by the NAFTA and now by the USMCA.
The United States and Canada were also parties to a sectoral trade agreement removing tariffs on automobile products, the Canada–United States Automotive Products Agreement (APTA), which entered into effect in 1965, and was superseded by the NAFTA and now by the USMCA.
