U.S.-Canada Trade Supports U.S. Manufacturing and Jobs Despite Overall Deficit

Surpluses in Manufactured Goods and Services Trade with Canada vs. Deficits in Fuels and Crude Materials

In the trailing twelve months (TTM) ending Q3 2024, the U.S. recorded a $53 billion trade surplus in manufactured goods (primarily machinery and transport equipment) and a $42 billion trade surplus in services with Canada. However, these were offset by trade deficits of $105 billion in fuels (oil and natural gas) and related materials, $11 billion in crude materials, and $7 billion in food products, resulting in a net $33 billion overall trade deficit.

While the overall trade balance shows a deficit, U.S.-Canada trade plays a significant role in supporting manufacturing and service industries. Imports of raw materials contribute to production, and exports of finished goods help sustain domestic manufacturing activities, creating mutual economic benefits.