According to the GCP, imports from Canada averaged $718.4 billion in 2020. The United States has a rich history of trading goods and services with Canada. However, the most common goods involved in these trades have fluctuated and changed throughout the decades. This blog will examine the most common imports from Canada to America to better track these trading trends.
Fuel and Oil
The United States’ most significant import from Canadais fuel and oil. These products have long been the largest import between these two countries. One of the most important reasons oil and fuel are such a prominent part of American-Canadian trade is that Canada is home to the world’s third-largest oil reserve. Although some may not realize it, most American oil and fuel come from Canada’s rich natural resources each year.
Canada’s access to oil has solidified its trading relationship with more than just the United States, though. In fact, Canada is the fourth-largest oil provider to countries all over the world. Though many may not be aware of Canada’s place in the global oil industry, this resource has primarily defined the country’s trading relations over the past hundred years.
Similar to Canada’s natural access to oil and fuel, cars and other vehicles are another of the most common import from Canada to America that tends to fly under the radar. Many Americans do not consider Canada to be the face of the automotive industry.
However, Canada’s mechanical and vehicle production feeds heavily into the success of the American car economy each year. In fact, most American-made cars use a majority of Canadian-imported car parts. Recognizing Canada’s role in the supply and demand of the United States’ auto industry is essential to understanding and predicting future global market trends.
Among the list of growing imports from Canada to the U.S. are wood and lumber products. The trade of these products continues to increase each year as the demand for lumber steadily rises. Many American construction industries and pallet manufacturers buy high-grade lumber imported from Canada each year. However, current tariff pricing due to resource shortages has increased the costs for these imports.
Weather changes, which have caused longer winters and wetter rainy seasons, prevent loggers from harvesting and collecting lumber through the waterlogged forests. These environmental and industrial changes will continue to affect the demand for lumber and solidify the resource as a significant Canadian import.
The trading relationship between Canada and the United States continues to grow and fluctuate with different industry and market trends. Understanding the most common goods traded between these two countries can better inform how specific industries rely on balancing their supplies and demands.