CFA Features

Canada-US Relations and Trade

Get the Facts

Canada and the United States (U.S.) share one of the most significant agricultural trading relationships in the world. Over half of Canada’s agri-food imports originate in the U.S., while 60% of Canada’s agri-food exports head south. Any disruption—like new tariffs—will directly impact farmers, food businesses, and consumers on both sides of the border.

With protectionist sentiments on the rise, our cross-border supply chains face serious risks. Now more than ever, dialogue, advocacy, and collaboration are essential to ensure our agricultural sectors remain strong and mutually beneficial.

The Canadian Federation of Agriculture (CFA) is working closely with government officials, industry stakeholders, and U.S. counterparts to ensure our farmers’ voices are heard. We aim to maintain open trade channels, emphasize the interdependence of our sectors, and continue to address emerging challenges.

Support for Canadian agriculture and agri-food industries impacted by trade disruptions

Key Objectives

Strong Federal Leadership

It is imperative that the Government of Canada shows strong and focused leadership on this issue, supporting farmers advocacy efforts south of the border through consistent, clear, and coordinated communication efforts.

United, Strategic Approach

Canada’s message should be clear, tariffs on agricultural products will have a negative effect on businesses and consumers on both sides of the border.

Maintain All Options

A comprehensive approach should be undertaken that includes advocating for targeted exemptions and consideration of tariff and non-tariff responses, compensation for affected industries, and promoting further trade diversification, where possible.

Safeguard Domestic Supply Chains

If required, when planning countermeasures, keep Canadian producers in mind, especially those who rely on cross-border inputs. It’s important to support our farmers in maintaining their competitiveness while also nurturing those vital supply relationships that are so crucial for our collective success.

Latest Updates

  • September 8, 2026 – Canada imposes 15, 25, and 50 per cent tariffs on products  drawn from those targeted by U.S.
  • August 22, 2026 – US implements additional 50% tariffs on a broad range of Canadian items (including motor vehicles, dairy, and alcoholic beverages)
  • February 4, 2026 – US implements 25% tariffs on most Canadian goods and 10% on energy products.
  • August 22, 2025 – Canada removes retaliatory tariffs on CUSMA compliant goods.
  • August 1, 2025 – Trump implements 35% tariffs on Canada

    US raises the effective tariff rate 10%, from 25% to 35%.

  • June 16, 2025 – Prime Minister’s Office

    Prime Minister Mark Carney met U.S. President Donald J. Trump at the G7 Leaders’ Summit in Kananaskis, Alberta. The two leaders discussed trade pressures and economic priorities. They agreed to launch formal negotiations on a new Canada–U.S. economic and security agreement within 30 days.

  • April 15, 2025 – The Minister of Finance, the Honourable François-Philippe Champagne, announced new measures for Canadian businesses and entities affected by the tariff dispute between Canada and the United States.

    If you have questions about Canada-United States-Mexico Agreement (CUSMA) compliance, there is now a direct phone line to support you. The Trade Commissioner Service has a new dedicated line that offers information on the rules of origin, customs procedures, and certification under the CUSMA. Please call 1-833-760-1167 | Monday to Friday, 7 a.m. to 8 p.m. ET.

  • April 3 -The U.S. imposed a 25 per cent tariff on Canadian automobiles

    Canada’s countermeasures include:

    Effective date to be confirmed, 25 per cent tariffs on non-CUSMA compliant vehicles imported into Canada from the United States, and a 25 per cent tariff on non-Canadian and non-Mexican content of CUSMA compliant vehicles imported into Canada from the United States.

    In addition, Canada intends to develop an auto tariff remission framework that reflects and incentivizes production and investment in Canada.

  • February 3, 2025 – Justin Trudeau on X

    Proposed tariffs will be paused for at least 30 days.

  • February 2, 2025 – Department of Finance Canada

    Government of Canada announces next steps in its response plan to unjustified U.S. tariffs

    Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, unveiled the full list of items covered by tariffs on $30 billion in goods imported from the U.S., the first phase of Canada’s response to unjustified U.S. tariffs on Canadian goods.

     

Canada-US Agriculture & Agr-iFood Trade Infographics

Key Messages

Canada and U.S. trade is important for the U.S. and Canadian economies.

  • Every day over US$2.5 billion worth of goods and services crosses the Canada-U.S. border.
  • The U.S. sells more goods to Canada than to any other country. Canada buys more U.S. goods than China, Japan, and Germany combined.
  • Canada is also the largest export market for 36 states, and top three for 46 states; 43 states export over US$1 billion to Canada every year.
  • Any measures that disrupt integrated North American agri-food supply chains will increase of cost of food and other agricultural products on both sides of the border.

Imports from Canada feed U.S. industry, making it stronger and more competitive. 

  • Roughly 70% of Canadian goods exports to the United States are used in the production of other goods.

The U.S. only has a trade deficit with Canada when you include energy exports.

  • While the US had a $41 billion trade deficit with Canada last year, a third of what Canada sells into the US are energy exports where prices have been high.
  • If we remove oil from the equation, the U.S. consistently runs a steady trade surplus with Canada.
  • In 2023, Canadians spent on average 6 times more per person on U.S. agricultural products compared to what Americans spent on Canadian products.  
  • The recent Canada-U.S. agricultural trade imbalance in Canada’s favour is due to higher import values, not increased volumes. Notably, agricultural trade includes inputs like pesticides and equipment, where the U.S. holds a trade surplus.

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