Annual goods imports:
US$3.29 trillion (2024) - the largest importer on earth.
Services
United States - Market Context for Canadian Exporters
> The United States is included in Global Canada's market set as context, > not a target: roughly 75% of Canadian merchandise exports go to the US, > and the 2026-27 tariff environment has made diversification away from > US-only dependence a funded, urgent priority. This guide covers the US > market for Canadian exporters who still sell there, the tariff landscape, > and the US federal/state procurement structures - and where the US fits in > a diversification plan. ---
Market at a glance
Canada's exports to the market:
goods+services exports of ~US$476B (2023); the US takes ~75-80% of Canada's merchandise exports (energy, vehicles, machinery, metals, agri-food, forest products).
Top import categories:
computers & electronic equipment; vehicles & parts; mineral fuels
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Market Overview
The United States is Canada's largest trading partner by a wide margin: the bulk of Canadian merchandise exports and a large share of services flow across the border, supported by the world's deepest integrated supply chains and the Canada-United States-Mexico Agreement (CUSMA). The Trade Commissioner Service frames the US as a market with extensive support for Canadian exporters facing US tariffs, covering both the trade relationship and the federal/state procurement structures.
The strategic context is the core of the Global Canada thesis: Canada's dependence on the US market (roughly 75% of merchandise exports, about 68% in
is now treated by the federal government and most provinces as a risk to
including the US
can hold their business hostage. The US market guide
be managed. Budget 2025's Trade Diversification Strategy commits to doubling non-US exports over a decade. This does not mean abandoning the US market - most Canadian exporters will continue selling there - but it means the CanExport 2026-27 rule now forces a choice between US and non-US projects, and funding, provincial programs, and EDC incentives increasingly reward diversification.
Global Canada's role is precisely this: it does not advise exporters to stop selling to the US; it helps them build non-US revenue so that no single market
provides the context for that decision.
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The US Tariff Landscape (2026-27)
The US tariff environment is the driver of the entire diversification play. Key points for Canadian exporters:
Tariffs have hit a wide range of Canadian exports
steel, aluminum, lumber, autos and auto parts, agriculture, and more - with rounds of additional US measures announced through 2026.
CUSMA (USMCA) remains in force
and provides duty-free trade for goods meeting its rules of origin, but tariffs have been applied in parallel to many goods, creating cost and uncertainty.
The federal response is funded diversification:
CanExport SMEs, EDC's Trade Impact Program ($5B envelope), BDC Pivot to Grow, the Regional Tariff Response Initiative, and the Canada Strong Diversification Fund all exist to help tariff-hit exporters pivot, with the 2026-27 CanExport rule forcing a US-or-non-US choice on new projects.
For Canadian exporters whose US business is tariff-impacted,
the practical question is how much revenue is at risk and where replacement non-US revenue can be built - the question Global Canada answers market by market.
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Top Industries and Opportunities
The TCS frames the US market for Canadian exporters around two main entry-support resources:
Industry Overview Hub:
an overview of priority industries for attracting foreign direct investment into the US - useful for Canadian companies considering US operations.
State Business Incentives Database:
information on incentive programs in every US state - relevant for Canadian companies establishing US operations.
For Canadian exporters, the US remains a massive market for almost every sector: automotive and manufacturing supply chains, aerospace, agriculture and agri-food, clean technology, ICT, life sciences, and consumer goods. The strategic point is not which US sectors are available - all are - but how much of the Canadian exporter's revenue is concentrated in the US and how quickly diversification can reduce that concentration.
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Trade Relations and Agreements
Canada and the United States are parties to the Canada-United States-Mexico Agreement (CUSMA). The TCS notes:
CUSMA benefits for small and medium-sized enterprises (SMEs)
are documented by the TCS, including simplified rules-of-origin and tariff preferences for qualifying goods.
The US is a member of the World Trade Organization (WTO)
and a party to various WTO treaties, including the WTO Government Procurement Agreement.
US government procurement
is structured around specific rules:
International trade treaties are implemented in the US via the Trade Agreements Act (19 USC Ch.13).
Civilian procurement is implemented via Part 25 of the Federal Acquisition Regulations.
Defence procurement is implemented under the Defense Federal Acquisition Regulation Part 225.
The TCS points Canadian suppliers to the Canadian Commercial Corporation's (CCC) US DoD Prime Contractor webpage for defence procurement access.
For a Canadian exporter, the US market is governed by deep, mature trade rules; the strategic question is concentration, not access.
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Tariffs, Rules and Regulations
The TCS reminds exporters that understanding regulations and policies relevant to the export market is crucial for success. For the US, the key regulatory layers are:
CUSMA tariff treatment:
claim the preference with correct rules-of- origin documentation; verify which goods remain duty-free versus tariffed.
Sanctions and export/import controls:
the US operates its own sanctions and export-control regimes; Canadian exporters selling to the US must comply with US re-export controls and screen end-use.
Federal procurement:
civilian procurement follows the Federal Acquisition Regulation (FAR Part 25 for trade agreements); defence follows DFARS Part 225 - with CCC as the Canadian entry for DoD prime contracting.
State-level regulation:
each US state has its own business, registration, and product regulations; the State Business Incentives Database is a useful starting point.
Standards and certification:
US standards (UL, ASTM, FDA, USDA, and others) differ from Canadian ones and must be met for market access.
Global Canada's destination compliance monitoring service tracks certification, licensing, and regulatory renewals so the exporter stays selling.
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Trade Shows and Events
The TCS lists the following events for the US (2025 calendar captured):
Annual Association of International Educators (NAFSA) Conference and Exhibition 2025
May 27-30, 2025, open. Industry: education.
Canadian Delegation at Women's Business Enterprise National Council (WBENC) 2025
June 22-26, 2025, open. Industries: across all sectors.
BIO International Convention
June 15-19, 2025. Industry: life sciences.
The US hosts the world's largest trade shows in almost every sector. For a Canadian exporter, US shows are a mature channel for maintaining US business; for diversification, the same grant dollars are better deployed on non-US markets where they are more likely to be CanExport-eligible under the US-or-non-US rule.
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Funding and Support Programs
Canadian exporters selling to the US should understand the funding landscape:
CanExport funding
covers 50% of eligible costs but under the 2026-27 rule applies to US OR non-US projects, not both - meaning a new CanExport project must choose. Diversification projects to non-US markets are the funded priority.
EDC Trade Impact Program
provides guarantees and working capital for tariff-impacted exporters, including those serving the US.
BDC Pivot to Grow
provides liquidity for US-tariff-exposed firms pivoting toward non-US revenue.
CCC (Canadian Commercial Corporation)
provides the government-to- government pathway for Canadian suppliers to US federal and defence procurement.
Provincial programs
(ON OTTF, QC PSCE, BC, and others) increasingly reward diversification away from US concentration.
Global Canada documents the grant-eligible cost buckets per activity, helping exporters use federal and provincial funding to build non-US revenue while maintaining their US business.
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Trade Offices and Contacts
The TCS maintains an extensive Canadian presence in the United States:
The Embassy of Canada to the United States
501 Pennsylvania Ave. NW, Washington DC, 20001-2111. (202) 682-1740. wshdc.infocentre@international.gc.ca. Mon-Fri 08:30-17:00.
The Consulate General of Canada, Atlanta
1175 Peachtree Street N.E., Suite 1700, Atlanta, Georgia, 30361. (404) 532-2000. atnta-td@international.gc.ca. Mon-Fri 09:00-12:00, 13:00-16:00.
The Consulate General of Canada, Boston
3 Copley Place, Suite 400, Boston, Massachusetts, 02116. (617) 247-5100. boston.commerce@international.gc.ca. Mon-Fri 09:00-12:00, 13:00-16:00.
The Consulate General of Canada, Chicago
Two Prudential Plaza, 180 North Stetson Avenue, Suite 2400, Chicago, Illinois, 60601. (312) 616-1860. chcgo-td@international.gc.ca. Mon-Fri 08:30-16:30.
The Consulate General of Canada, Dallas
500 N Akard Street, Suite 2900, Dallas, Texas, 75201. (214) 922-9806. dalas-td@international.gc.ca. Mon-Fri 08:30-12:00; 12:30-16:00.
The first free step for US-related work is registering with the Trade Commissioner Service. For diversification, Global Canada coordinates with the TCS and its own in-market partners across the 18 non-US markets.
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Market Entry Considerations
The US is the baseline, not the target:
most Canadian exporters will continue selling to the US; the question is how much of revenue is concentrated there and how fast non-US revenue can be built.
CUSMA and procurement rules matter:
for US sales, get rules-of-origin right, use CCC for federal/defence procurement, and know FAR/DFARS if you sell to government.
Concentration is the risk:
the federal government, provinces, and EDC all now treat US concentration as the risk to manage - and fund its reduction.
One grant, one choice:
CanExport 2026-27 applies to US or non-US projects, not both - plan the portfolio accordingly.
Grant discipline:
apply to the highest-cost-share program first, keep receipts, segregate cost buckets, and disclose all government sources.
The US is the diversification baseline, not a target
GC's services focus on non-US markets.
2025-2027
25% IEEPA tariffs on Canadian goods (10% on energy) triggered retaliatory Canadian tariffs; a February 2026 House vote to repeal the Canada tariffs passed 219-211 but needs Senate and presidential assent.
Most goods remain covered by CUSMA exemptions, but the trade relationship carries ongoing volatility.
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Specific entry notes for this market:
How Global Canada Can Help
The US is context for Global Canada, not a target market. Global Canada helps Canadian exporters build non-US revenue across 18 target markets (Tier 1: India, Germany, France, UK, Netherlands, China; Tier 2: Belgium, Italy, Spain, Japan, South Korea, Singapore, UAE, Hong Kong; Tier 3: Mexico, Poland, Switzerland, Vietnam) using the full service stack:
Non-US Buyer Acquisition:
a monthly pipeline of vetted importers and distributors in the target markets.
Trade-Data Buyer Pipeline:
refreshed, pre-qualified buyer lists per market, with volume discounts for 3+ markets.
Reverse-Search Displacement:
find buyers in each target market currently buying from non-Canadian (including US) suppliers and win them.
Local-Language Buyer Discovery:
surface buyers in local-language channels in each market.
In-Market Distributor/Agent Network Build:
build the sales channel per market.
Foreign Subsidiary Setup and Trade Show Program:
establish presence and work the shows in each market.
Tender and Bid Management:
win public and enterprise tenders per market.
The US market guide exists to make the diversification decision concrete: if your revenue is heavily concentrated in the US, the funded, urgent path is to build non-US revenue in the 18 target markets - with the grant paying for the activity. Contact us for a free readiness call to assess your US concentration and build your diversification plan.
Relevant services
The services below are grant-eligible: CanExport and EDC reimburse up to 50% for incorporated Canadian exporters.
Book a free readiness call
Grant programs can reimburse up to 50% of eligible market-entry costs. In one free call we tell you honestly whether your product fits a non-US market.
Book a free readiness call