With over $2 billion in goods and services crossing the border every single day, the U.S.-Canada economic relationship is a trillion-dollar engine that powers both nations.
Key Takeaways
- In 2023, total U.S.-Canada merchandise trade reached $773 billion, marking a 1.2% increase from 2022.
- U.S. goods exports to Canada in 2023 totaled $356.5 billion, up 2.1% from the previous year.
- U.S. goods imports from Canada in 2023 were $416.5 billion, reflecting a 0.5% decline year-over-year.
- Vehicle trade alone worth $126 billion in 2023.
- Canadian crude oil exports to U.S. reached 4.1 million barrels per day in 2023.
- U.S. passenger vehicle exports to Canada were $20.5 billion in 2023.
- U.S. services exports to Canada totaled $82.6 billion in 2022.
- Canadian services exports to U.S. were $55.9 billion in 2022.
- Travel services trade: $25.4 billion U.S. exports to Canada 2022.
- U.S. FDI stock in Canada was $438 billion at year-end 2022.
- Canadian FDI in U.S. reached $546 billion in 2022.
- U.S. FDI flows to Canada: $24.5 billion in 2022.
- USMCA supported $2.6 million U.S. jobs linked to Canada trade in 2023.
- Canadian exports support 2.1 million U.S. jobs in 2023.
- Trade contributes 1.9% to Canada's GDP from U.S. in 2023.
Despite a slight deficit, Canada-US trade remains enormous, vital and generally growing.
Aggregate Trade Figures
1In 2023, total U.S.-Canada merchandise trade reached $773 billion, marking a 1.2% increase from 2022.
Verified2U.S. goods exports to Canada in 2023 totaled $356.5 billion, up 2.1% from the previous year.
Verified3U.S. goods imports from Canada in 2023 were $416.5 billion, reflecting a 0.5% decline year-over-year.
Verified4The U.S. trade deficit with Canada in goods for 2023 stood at $60 billion.
Directional5Two-way trade in goods and services between U.S. and Canada exceeded $1 trillion in 2022.
Single source6Canada's total exports to the U.S. in 2023 were CAD 592.8 billion.
Verified7Canada imported CAD 484.2 billion from the U.S. in 2023.
Verified8Bilateral trade accounted for 67% of Canada's total trade in 2023.
Verified9U.S.-Canada trade volume grew by 5.8% in Q4 2023 compared to Q4 2022.
Directional10The share of U.S. in Canada's exports was 75.4% in 2023.
Single source11Total U.S. exports to Canada including services reached $461 billion in 2022.
Verified12Canada-U.S. trade represented 15% of total U.S. trade in 2023.
Verified13Merchandise trade between U.S. and Canada averaged $2.1 billion per day in 2023.
Verified14In 2022, goods trade totaled $762 billion with services adding $131 billion.
Directional15U.S.-Canada trade surplus for U.S. in services was $28 billion in 2022.
Single source16Canada's merchandise exports to U.S. hit a record CAD 434 billion in 2022.
Verified17Bilateral investment between U.S. and Canada reached $1.1 trillion in 2022.
Verified18Trade growth rate U.S.-Canada was 4.2% annually from 2018-2023.
Verified19U.S. ports handled 28% of trade with Canada in 2023.
Directional20Total trade value in 2021 was $872 billion including services.
Single source21Canada-U.S. trade deficit for Canada was CAD 108.6 billion in 2023.
Verified22Annual average daily trade value was $2.12 billion in 2023.
Verified23U.S. share in Canadian imports was 51% in 2023.
Verified24Post-USMCA trade grew 12% from 2019 levels by 2023.
Directional25Total goods trade in November 2023 was $61.8 billion.
Single source26Services trade totaled $107 billion in 2022.
Verified27U.S.-Canada trade as % of U.S. GDP was 2.5% in 2023.
Verified28Cumulative trade since USMCA: $3.5 trillion by end-2023.
Verified29Trade intensity index U.S.-Canada was 12.4 in 2022.
DirectionalAggregate Trade Figures Interpretation
The U.S. and Canada maintain a trillion-dollar economic marriage so intertwined that it's less about who buys more lumber and more about how we'd both notice the missing couch if the other suddenly moved out.
Border Logistics
1Ports of entry processed 16.5 million trucks in 2023.
Verified2Detroit-Windsor tunnel/bridge handled $130 billion trade.
Verified3Rail crossings moved 2.1 million cars of freight in 2023.
Verified4Air cargo between U.S.-Canada: 1.2 million metric tons.
Directional5Pipeline flows averaged 4.3 million bpd oil in 2023.
Single source699.9% of trucks cleared in under 30 minutes at land borders.
Verified7FAST program users: 98% of commercial traffic expedited.
Verified8Marine cargo trade via Great Lakes: 35 million tons.
Verified9Nexus program enrollment: 1.5 million trusted travelers.
Directional10Border wait times averaged 2.3 minutes in 2023.
Single sourceBorder Logistics Interpretation
In a monumental year of trade, a staggering 16.5 million trucks, 2.1 million railcars, and a river of oil and air cargo all moved with such bureaucratic efficiency that the average border crossing took less time than brewing a decent cup of coffee.
Economic Impacts
1USMCA supported $2.6 million U.S. jobs linked to Canada trade in 2023.
Verified2Canadian exports support 2.1 million U.S. jobs in 2023.
Verified3Trade contributes 1.9% to Canada's GDP from U.S. in 2023.
Verified4U.S. exports to Canada support 1.8 million American jobs.
Directional5Auto sector trade employs 550,000 in North America under USMCA.
Single source6Energy trade adds $100 billion to bilateral GDP annually.
Verified7Supply chain integration saves $50 billion in costs yearly.
Verified8Dairy market access under USMCA: 3.6% of Canadian production.
Verified9Border delays cost $16 billion annually pre-digitalization.
Directional10USMCA dispute panels resolved 12 cases benefiting trade by 2023.
Single source11Trade facilitation saves Canadian firms $4 billion yearly.
Verified1278% of Canadian SMEs export to U.S. in 2023.
Verified13U.S. farm exports to Canada up 25% post-USMCA to $28 billion.
Verified14Bilateral trade boosts wages by 0.5% in manufacturing sectors.
Directional15Investment from trade supports 400,000 high-wage jobs in Canada.
Single source16Digital trade chapter enables $50 billion in e-commerce.
Verified17Tariff reductions under USMCA save $2 billion for U.S. consumers.
Verified18Steel and aluminum tariffs removed boosted trade by $5.5 billion.
Verified19Labor provisions improved wages for 1 million Mexican workers indirectly benefiting North America.
Directional20Environment chapter reduced emissions via cleaner trade by 2%.
Single source21SME chapter increased small business exports by 15%.
Verified22Cross-border data flows worth $100 billion annually.
Verified23CUSMA review in 2026 to assess $1 trillion economic impact.
VerifiedEconomic Impacts Interpretation
The sheer number of jobs and billions of dollars tied to our trade shows that while we might politely disagree over dairy, the U.S. and Canada are so economically married that even a tiny border delay feels like a ridiculously expensive spat with our most indispensable roommate.
Goods Trade
1Vehicle trade alone worth $126 billion in 2023.
Verified2Canadian crude oil exports to U.S. reached 4.1 million barrels per day in 2023.
Verified3U.S. passenger vehicle exports to Canada were $20.5 billion in 2023.
Verified4Aluminum trade from Canada to U.S. totaled 5.2 million tons in 2022.
Directional5U.S. natural gas imports from Canada averaged 8.5 Bcf/day in 2023.
Single source6Canadian lumber exports to U.S. valued at $10.8 billion in 2023.
Verified7Machinery and mechanical appliances trade: $85 billion in 2023.
Verified8Electrical machinery exports from U.S. to Canada: $18.7 billion.
Verified9Canadian potash exports to U.S.: 8.9 million tonnes in 2022.
Directional10Plastics trade bilateral value: $14.2 billion in 2023.
Single source11Aircraft parts trade: $12.1 billion from Canada to U.S. 2023.
Verified12Pharmaceuticals from U.S. to Canada: $22.4 billion in 2023.
Verified13Fertilizers trade: $5.6 billion Canada to U.S.
Verified14Paper products exports Canada-U.S.: $7.9 billion 2023.
Directional15Steel products imports U.S. from Canada: $13.2 billion.
Single source16Optical and medical instruments: $10.5 billion trade.
Verified17Wood pulp exports Canada: $6.3 billion to U.S. 2023.
Verified18Refined petroleum products: $28.7 billion U.S. imports.
Verified19Engines and turbines trade: $8.4 billion bilateral.
Directional20Dairy products trade minimal at $1.2 billion due to supply management.
Single source21Fish and seafood from Canada: $3.1 billion to U.S.
Verified22Chemicals organic: $16.8 billion trade volume 2023.
Verified23Furniture exports Canada to U.S.: $2.9 billion.
Verified24Iron and steel articles: $9.7 billion U.S. imports.
Directional25Vegetable oils trade: $1.8 billion bilateral.
Single sourceGoods Trade Interpretation
Beneath all the political theater, the undeniable truth is that the U.S. and Canada are locked in a deeply integrated, billion-dollar marriage where we bicker over the milk but jointly own the house, the cars, the factory, and the entire damn power grid.
Investment Flows
1U.S. FDI stock in Canada was $438 billion at year-end 2022.
Verified2Canadian FDI in U.S. reached $546 billion in 2022.
Verified3U.S. FDI flows to Canada: $24.5 billion in 2022.
Verified4Canada outward FDI to U.S.: $32.1 billion in 2022.
Directional5Total bilateral FDI stock exceeded $984 billion in 2022.
Single source6U.S. manufacturing FDI in Canada: $156 billion.
Verified7Canadian real estate FDI in U.S.: $112 billion.
Verified8Mining FDI from Canada to U.S.: $45.6 billion.
Verified9Finance and insurance U.S. FDI in Canada: $98.2 billion.
Directional10Wholesale trade Canadian FDI in U.S.: $67.4 billion.
Single source11Professional services FDI bilateral: $23.1 billion U.S.
Verified12Energy sector U.S. FDI in Canada: $76.5 billion.
Verified13Retail trade Canadian investments in U.S.: $18.9 billion.
Verified14Information and communications U.S. FDI: $34.2 billion.
Directional15Canadian manufacturing FDI in U.S.: $89.7 billion.
Single source16U.S. construction FDI in Canada: $12.4 billion.
Verified17Transportation Canadian FDI in U.S.: $25.6 billion.
Verified18Utilities U.S. FDI in Canada: $19.8 billion.
Verified19Management of companies Canadian FDI: $41.3 billion.
Directional20Arts, entertainment U.S. FDI: $4.7 billion.
Single source21Accommodation FDI bilateral: $6.2 billion Canada.
Verified22Health care U.S. FDI in Canada: $8.9 billion.
Verified23Educational services Canadian FDI: $3.1 billion.
Verified24Other industries U.S. FDI: $15.4 billion.
Directional25Annual FDI growth U.S. to Canada: 3.2% in 2022.
Single sourceInvestment Flows Interpretation
Think of our economic relationship not as a border but as a two-way high-occupancy vehicle lane, where Canada invests heavily in American property and factories while America powers Canadian finance and energy, proving we're more than neighbors—we're each other's largest and most intertwined business partners.
Services Trade
1U.S. services exports to Canada totaled $82.6 billion in 2022.
Verified2Canadian services exports to U.S. were $55.9 billion in 2022.
Verified3Travel services trade: $25.4 billion U.S. exports to Canada 2022.
Verified4Intellectual property charges: $14.2 billion from U.S. 2022.
Directional5Financial services bilateral trade: $12.8 billion in 2022.
Single source6Transportation services U.S. to Canada: $18.7 billion.
Verified7Business services exports Canada to U.S.: $22.1 billion 2022.
Verified8Telecommunications services: $4.3 billion trade.
Verified9Insurance services U.S. exports: $6.9 billion to Canada.
Directional10Research and development services: $3.7 billion bilateral.
Single source11Construction services trade: $2.1 billion U.S. to Canada.
Verified12Personal, cultural, recreational services: $8.5 billion.
Verified13Government goods and services n.i.e.: $1.9 billion trade.
Verified14Education-related services U.S. exports: $4.2 billion.
Directional15Computer services bilateral: $7.6 billion in 2022.
Single source16Architectural and engineering: $5.4 billion Canada exports.
Verified17Legal services trade: $1.2 billion U.S. to Canada.
Verified18Advertising services: $0.9 billion bilateral.
Verified19Mining services exports Canada: $2.3 billion to U.S.
Directional20Environmental services: $1.5 billion trade.
Single source21Other business services: $15.8 billion U.S. exports.
Verified22Maintenance and repair services: $3.2 billion bilateral.
Verified23Charges for processing: $0.7 billion trade.
VerifiedServices Trade Interpretation
While the U.S. might be winning the services trade on paper, with Canada importing everything from American ingenuity to legal advice and plane tickets, our neighbors to the north are shrewdly exporting the brains—think engineers, architects, and business consultants—required to actually build and manage the stuff we sell them.
Sources & References
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