Bilateral trade declines despite strong exchanges in key sectors
The value of trade between Canada and the United States declined by nearly $2 billion between the first quarter of 2024 and the first three months of 2026, according to data from Global Affairs Canada.
Rachael Dolan, a spokesperson for Global Affairs Canada, said total trade in goods and services between the two countries was 0.6% lower in the first quarter of 2026 compared with the same period in 2024, representing a decrease of $1.9 billion.
Total Canada-U.S. trade in goods and services reached $322.8 billion during the first three months of 2026. This included $169.6 billion in Canadian exports and $153.1 billion in imports.
Canadian exports to the United States declined by 1.6%, or $2.8 billion, while imports increased by 0.6%, or $935 million.
Precious metals and technology sectors see growth
Despite the overall decline, several industries recorded increases in bilateral trade. Precious stones and metals experienced the largest percentage increase over the two-year period, with total trade rising by $2.8 billion.
Trade in cocoa and related products increased by 52%, while aircraft and aircraft parts recorded a 15.5% increase.
On the export side, cocoa and related products posted the largest gain, rising 58.8%. Electronics exports increased by 9.2%, while exports of salts, sulphur, earth, stone and cement grew by 57.9%.
Automotive sector leads trade declines
The largest decline in bilateral trade came from motor vehicles and parts, which fell by 18.9%, representing a decrease of $6.7 billion.
Other significant declines included iron and steel trade, which dropped by 43.5%, and mineral fuels and oils, which declined by 3.3%.
Trade tensions ahead of CUSMA discussions
The trade figures come as the United States increases pressure on Canada ahead of formal discussions regarding CUSMA, the Canada-United States-Mexico trade agreement.
U.S. President Donald Trump has also threatened to introduce additional tariffs on Canadian goods, adding uncertainty to the future of cross-border commerce.
Exports of Canadian goods and services to the United States totaled $709.6 billion in 2024 and $683.3 billion in 2025.
Imports from the United States totaled $618.3 billion in 2024 and $604.1 billion in 2025.
