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January 31, 2025
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BUSINESS ECONOMY

Actually, Canada Helps Make “Made in the USA” Possible

Donald Trump keeps saying the U.S.-Canada trade relationship is unfair and somehow costing Americans. Yet again, he’s not telling the whole story. Canada and the U.S. successfully rely on each other in ways that go far beyond dollars, and the facts prove it.

If we break it down, the sales between us fall into two buckets and here’s why:

Bucket #1: Energy and Raw Materials

Canada is the largest supplier of energy to the U.S., providing oil, gas, and electricity. In 2023, energy alone accounted for $122 billion in Canadian export sales to the U.S. The energy we sell them helps keep American homes warm, cars running, and factories powered. This bucket is so critical because the U.S. can’t easily produce these resources on its own. It would take decades and billions of investment and, even then, they don’t have the same reserves Canada does especially when it comes to minerals like nickel and cobalt, which are critical to industries like technology and defense. These resources aren’t just valuable they’re essential to Americans’ daily lives and their economy.

Bucket #2: Goods and Products

This bucket just wouldn’t exist without the first which is why they are separated. The energy and raw materials Canada supplies fuel the industries that create finished goods both for Americans and Canadians.

Here’s a little-touted fact for you: Canada actually buys more finished goods from the U.S. than the U.S. buys from us about $28 billion more. These goods include machinery, cars, and agricultural products like fresh produce, which are just as essential to Canadians’ lives. For example, Canadian businesses depend on U.S.-made equipment to power their operations, and Canadian families rely on U.S. food exports to stock our grocery shelves.

So the idea that Canada is somehow costing the U.S. or taking advantage of the relationship just doesn’t hold up. It’s not true. Canada is the top customer for 36 U.S. states and buys more from those states than any other country. And 70% of what Canada sells to the U.S. are raw materials minerals, lumber, and other inputs that fuel American industries and create the products Americans rely on every day and Canadians buy.

Our energy powers American homes. Our minerals build American factories. And our resources make  Made in the USA possible. In turn, U.S. goods greatly improve the lives of Canadians by providing products we depend on, from fresh fruits to high-tech machinery.

This isn’t about one side losing and the other winning. It’s about two economies that have successfully and peacefully worked together for decades, to each other’s mutual benefit. Trump’s rhetoric may be loud he’s clearly looking for money wherever he thinks he can simply demand itbut the facts are louder: Canada isn’t costing the U.S. anything. And his demands are not fair or justified.

By : Arlene Dickinson

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