Economy/Trade

The United States–Mexico–Canada Agreement (USMCA) is scheduled for a review in 2026.

More than 77% of Canada's exports go to the United States.

The United States has applied Section 232 tariffs that include 50% tariffs on steel and aluminum imports applicable to Canadian shipments.

About $2.5 billion worth of goods and services cross the Canada–United States border each day.

The U.S. Commerce Department reported that in August 2025 the United States goods and services trade deficit was $59.6 billion; imports were $340.4 billion (down 5% from July 2025) and exports were $280.8 billion (up 0.1% from July 2025).

The U.S. Commerce Department reported that the U.S. cumulative trade deficit for January–August 2025 was $713.6 billion, a 25% increase from $571.1 billion in January–August 2024.

In national accounts, imports are subtracted when calculating gross domestic product (GDP), so a reduction in imports, holding other factors constant, increases net exports and contributes positively to measured GDP.

Tariffs on imports are paid by importers who typically attempt to pass the higher costs to their customers, which can contribute to higher consumer prices and inflation.