Canada's biggest trading partner by far is the United States, accounting for the vast majority of its trade in both goods and services, supported by the USMCA (CUSMA) agreement, with China and the EU being the next largest partners, according to recent data and government reports. The U.S. receives over 70% of Canadian exports, making the economies deeply integrated, though Canada seeks to diversify trade, especially with China.
Canada's Top Export Partners
Canada has long relied on the U.S. as its number one trading partner, with more than 75% of Canadian exports going south of the border in 2024.
The United States is Canada's largest trading partner in goods and services, while Canada is the U.S.' second-largest trading partner.
Yes, Canada is the largest source of crude oil for the U.S., consistently supplying around 60% of the total crude oil imported by the United States, making it the top foreign supplier for U.S. refineries, though the U.S. also produces a significant amount of its own oil. This close relationship is due to geographic proximity, existing pipeline infrastructure, and the specific heavy crude types from Canada that many U.S. refineries are built to process.
The economies of Canada and the United States are similar because both are developed countries. While both countries feature in the top ten economies in the world in 2022, the U.S. is the largest economy in the world, with US$24.8 trillion, with Canada ranking ninth at US$2.2 trillion.
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.
About $259,300 in aid was obligated for fiscal year (FY) 2024, the most recent fully-reported year. Another $206,400 has been reported for FY 2025.
The two nations' trade volume totaled around $56 billion in value in 2024, according to Global Affairs, who notes that Mexico is Canada's third-largest single-country trade partner after the United States and China.
The United States is the world's 2nd-largest trading nation, behind only China, with over $7.0 trillion in exports and imports of goods and services in 2022.
The service sector in Canada is vast and multifaceted, employing about three quarters of Canadians and accounting for 70% of GDP.
“The richest cities are magnets for human capital—entrepreneurs, financiers, creators, and policymakers who define the tempo of global progress,” it reads. The highest-ranking metropolitan from Canada is Toronto, taking the 22nd spot with a GDP of US$917.49 million.
Canada and the United States signed the Free Trade Agreement in 1988 (which was expanded into NAFTA by the addition of Mexico in 1994). Since that time the United States has dominated Canadian trade by an overwhelming degree.
Canada's closest friend and ally is overwhelmingly considered to be the United States, due to their shared border, deep economic ties, history, shared values, and extensive military cooperation through NORAD and NATO, despite occasional political tensions. Other important partners include the United Kingdom and France, reflecting Canada's Commonwealth and Francophone ties, with the UK often seen as a very close ally.
Canada has much higher housing costs, but healthcare costs are much higher in the US. While US salaries are slightly higher, Canadians have a much easier time making a higher salary with less education. Honestly, both countries have positive and negative aspects when it comes to affordability.
In North Carolina, Trump reaffirmed his stance that Canada should become the 51st state, claiming that under an American-controlled Canada, Canadians would be offered lower taxes and better health coverage.
The United States is the world's richest country by a wide margin. It's a global hub for finance, tech, energy, and entertainment. From Silicon Valley to Wall Street, American firms shape worldwide trends. The country benefits from vast natural resources, advanced infrastructure, and a culture of innovation.
Canada ranks among the global leaders in education and free public healthcare, offering systems that support both citizens and residents equally. Canadian universities attract thousands of international students each year, establishing Canada as a global hub for knowledge and innovation.