Import Dependence Between U.S.A and Canada

The U.S. and Canada are significant trading partners, but recent developments have tested this relationship. In 2024, Canada accounted for 13% of U.S. imports, with oil and gas leading at 60%. Meanwhile, 50% of goods imported into Canada were from the U.S., highlighting the deep trade interdependence between the two nations. President Trump has recently signed an executive order imposing 25% tariffs on all Canadian imports (excluding energy imports with 10%), citing security/immigration concerns and fentanyl-related issues which would go into effect from March 4, 2025.

In retaliation, Prime Minister Trudeau imposed a 25% tariff on all U.S. imports to Canada. This escalation underscores the complexity of bilateral trade, where both economies rely heavily on each other. With Canada sourcing over 65% of its imports from the U.S. in key regions like Ontario, and the U.S. similarly dependent on Canadian energy, the impact of these policies could have far-reaching consequences for both sides.