Canada sells the United States a lot of things the United States actually needs—especially energy and raw materials—and then spends a huge amount of that money buying American goods and services.
In 2025, the U.S. bought
$381.9 billion in Canadian goods and sold Canada
$333.6 billion in goods, producing a U.S. goods deficit of about
$48.3 billion. That sounds large until you put it into context. The two countries conducted roughly
$715 billion in goods trade and
$872 billion in goods and services trade in 2025. That's an enormous integrated economy, not a situation where Canada is simply "selling to America and taking American money."
services
The U.S. actually runs a
$27.7 billion services surplus with Canada.
Americans sold Canadians
$92.3 billion in services in 2025 while Canadians sold Americans
$64.5 billion.
This is actually a goods surplus. The United States has a services surplus. Look at the entire trading relationship.
That's a much more sophisticated way of looking at it.
Energy
Canada is extraordinarily important to the U.S. energy system. In 2025, Canada supplied:
- 63.4% of U.S. crude-oil imports
- almost 100% of U.S. natural-gas imports
- 24.9% of refined petroleum-product imports
- 97.9% of U.S. NGL imports
Canada exported
$157.5 billion worth of crude oil, refined petroleum products, natural gas and natural-gas liquids to the United States in 2025.
"We're not being ripped off because Canada sells us oil. We're buying a commodity we want from the largest foreign supplier sitting directly next door." Canadian oil doesn't have to travel halfway around the world. It moves through an integrated North American pipeline and refining system.
Dependence
Canada is
more dependent on the United States than the United States is on Canada. In 2025,
71.7% of Canada's merchandise exports went to the United States. Meanwhile, Canada accounted for roughly 14% of total U.S. goods exports and imports combined. That's an enormous asymmetry. If Canada were deliberately "taking advantage" of America through trade, you'd expect the smaller country to have tremendous leverage over the larger one.
In reality,
Canada has an enormous economic incentive to maintain access to the American market.
And the recent tariff fight demonstrates that vulnerability.
"What exactly is Canada doing to the United States that we couldn't simply stop buying?"
Canada isn't forcing Americans to purchase Canadian products.
Americans voluntarily purchase:
- Canadian oil
- natural gas
- electricity
- automobiles and parts
- lumber
- metals
- agricultural products
- minerals
because American businesses and consumers find those products useful or competitive.
That's what trade is.
A trade deficit doesn't automatically mean the other country is "winning."
Canada buys an enormous amount from us
Canadian consumers and businesses buy:
- American machinery
- computers and electronics
- automobiles
- aircraft
- chemicals
- pharmaceuticals
- agricultural products
- financial services
- travel and tourism
- professional services
- entertainment and intellectual property
And the U.S. services surplus demonstrates that Americans are extremely successful at selling higher-value services to Canada.