What the US Imports from Canada: A Complete Guide
The United States and Canada share the largest bilateral trading relationship in the world — and Canada consistently ranks as the top or second-largest source of US imports in any given year. Understanding what the US imports from Canada, and how those goods move across the border, is essential knowledge for any importer, supply chain manager, or logistics professional operating in North American trade.
US-Canada Trade: The bilateral goods trade between the United States and Canada totaled approximately $773 billion in 2023, according to the International Trade Administration. US imports from Canada alone reached roughly $418 billion that year, covering everything from crude oil to canola seeds to auto parts.
Overview: The Scale of US-Canada Trade
US imports from Canada refers to the full range of commercial goods — raw materials, manufactured products, agricultural commodities, and energy — that cross the Canada-US border southbound and enter US customs territory.
Definition Block — US-Canada Trade Under USMCA: The United States-Mexico-Canada Agreement (USMCA) is a trilateral free trade agreement that took effect on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). USMCA governs tariff treatment, Rules of Origin, intellectual property protections, and digital trade standards for goods moving between the US, Canada, and Mexico. Goods that meet USMCA Rules of Origin requirements qualify for preferential — often zero — tariff rates at the US border.
Canada has been the United States’ largest goods trading partner for most of modern history. The two countries share 5,525 miles of border, 119 land ports of entry, and deeply integrated supply chains — particularly in automotive manufacturing, energy, and agriculture.
Key statistics:
- $418 billion in US goods imports from Canada in 2023 (source: US International Trade Administration)
- ~60% of US crude oil imports came from Canada in 2023 (source: US Energy Information Administration)
- $88 billion in motor vehicles and parts imported from Canada annually (source: US Census Bureau)
- 119 land ports of entry serve the US-Canada border (source: CBP.gov)
Top Categories: What the US Actually Imports from Canada
Here is a breakdown of the major commodity categories the United States imports from Canada, their approximate annual import values, and common HTS code chapters.
| Category | Approx. Annual US Import Value | Key HTS Chapters |
|---|---|---|
| Energy (crude oil, natural gas, electricity) | ~$130–$150 billion | Ch. 27 |
| Motor vehicles and parts | ~$85–$90 billion | Ch. 87 |
| Machinery and mechanical equipment | ~$35–$40 billion | Ch. 84, 85 |
| Lumber, wood products, and paper | ~$18–$22 billion | Ch. 44, 47, 48 |
| Agricultural products (canola, pork, potatoes) | ~$30–$35 billion | Ch. 02, 07, 12, 15 |
| Aluminum and steel products | ~$10–$15 billion | Ch. 72, 76 |
| Pharmaceuticals and chemicals | ~$8–$12 billion | Ch. 29, 30 |
| Plastics and rubber | ~$8–$10 billion | Ch. 39, 40 |
Source: US Census Bureau, ITA. Values are approximate and vary year to year.
Energy Products
Canada is the single largest supplier of crude oil to the United States. Canadian oil — primarily extracted from Alberta’s oil sands — travels to US refineries via pipeline networks including the Keystone system. Natural gas and electricity (particularly hydroelectric power from Quebec) round out the energy import picture. These goods are classified under HTS Chapter 27 (Mineral fuels, mineral oils).
Motor Vehicles and Automotive Parts
The US-Canada automotive supply chain is among the most integrated in the world. Assembly plants in Ontario produce vehicles that are shipped directly to US dealerships, while parts cross the border multiple times during manufacturing. Detroit, Windsor, and the broader Great Lakes region represent the heart of this trade. Vehicles fall under HTS Chapter 87; engines and transmissions typically under Chapter 84.
Lumber and Wood Products
Canadian softwood lumber — primarily from British Columbia and Quebec — is a major input for US homebuilding. This trade has a long and contentious history: US lumber producers have repeatedly filed antidumping and countervailing duty petitions against Canadian softwood lumber, resulting in duty orders that have been in place, modified, and re-litigated for decades. Importers of Canadian lumber should always verify current CVD/ADD rates at enforcement.trade.gov/adcvd before filing entry.
Agricultural Products
Canada exports substantial volumes of canola seed, canola oil, pork, live cattle, potatoes, and fresh produce to the United States. Canola (classified under HTS Chapter 12) is particularly significant — Canada accounts for roughly 90% of US canola imports. Pork and beef move under Chapter 02. Food imports from Canada may require FDA Prior Notice filings in addition to CBP customs entry.
Machinery and Industrial Equipment
Canada exports a wide range of industrial machinery, turbines, aircraft parts, and electronic components to the US. These goods span HTS Chapters 84 and 85 and frequently qualify for USMCA preferential treatment when North American content requirements are met.
The Regulatory Framework Governing US Imports from Canada
USMCA Rules of Origin
Under USMCA (implemented in US law via the United States-Mexico-Canada Agreement Implementation Act, Pub. L. 116-113), goods must meet specific Rules of Origin to qualify for preferential tariff treatment. The rules vary by product category and are defined in USMCA Annex 4-B.
For most manufactured goods, the key tests are:
- Tariff shift — the good must undergo a specified change in HTS classification during North American production
- Regional Value Content (RVC) — a minimum percentage of the good’s value must originate in North America (thresholds vary from 50% to 75% depending on product)
- Net cost method or transaction value method — the method used to calculate RVC
Importers must retain supporting documentation for five years under 19 CFR Part 181.
CBP Entry Requirements
All commercial imports from Canada — regardless of origin — must comply with US Customs and Border Protection entry requirements under 19 USC 1484. This means:
- Filing a formal entry (CBP Form 3461 for release, CBP Form 7501 for entry summary) or informal entry depending on value
- Paying applicable duties, taxes, and fees
- Providing accurate HTS classification (consult hts.usitc.gov)
- Retaining import records for five years under 19 CFR Part 163
Goods valued under $800 may qualify for de minimis entry with no formal filing required, though this threshold applies per shipment and has been subject to ongoing congressional scrutiny.
Section 232 Tariffs on Steel and Aluminum
Steel and aluminum from Canada have been subject to Section 232 tariffs (25% on steel, 10% on aluminum) under Presidential Proclamation 9705 (2018). These tariffs were suspended for Canadian and Mexican goods in 2019, reinstated in modified form under subsequent executive actions, and have continued to shift. Importers of Canadian steel or aluminum must verify the current tariff status through CBP.gov or consult a licensed customs broker, as rates and exemptions change with executive action.
Softwood Lumber CVD/ADD Orders
Canadian softwood lumber has been subject to countervailing duty and antidumping duty orders repeatedly since the 1980s. Current rates vary by Canadian producer and province. The full list of active orders is maintained at enforcement.trade.gov/adcvd. Importers must deposit estimated duties at the time of entry, with final rates determined by the Department of Commerce annual review.
How a Canadian Import Moves Through US Customs: Step-by-Step
Whether goods arrive by truck at a land border crossing or by rail at a port like Buffalo, the customs process follows a standard flow.
- Pre-arrival filing — For shipments arriving by truck, the importer or broker files advance cargo information via ACE (Automated Commercial Environment) at least one hour before arrival at the land border.
- Entry filing — A licensed customs broker or the importer of record files the entry documents: entry summary (CBP Form 7501), commercial invoice, packing list, and any required permits or certificates.
- USMCA claim — If the importer wants to claim preferential tariff treatment under USMCA, they must include a USMCA certification of origin (self-certified by the exporter, producer, or importer) with or available to support the entry.
- CBP review and examination — CBP reviews the entry. Most low-risk shipments are released quickly (often within hours at major land crossings). High-risk shipments may be held for physical examination.
- Duty payment — Applicable duties, Harbor Maintenance Fees, Merchandise Processing Fees, and any AD/CVD deposits are paid at time of entry summary filing (typically within 10 working days of release).
- Post-entry audit risk — CBP may conduct a Focused Assessment or Compliance Measurement audit up to five years after the entry date. Accurate records are essential.
For goods entering at busy ports like Detroit, Buffalo, or Blaine, Washington, a licensed broker familiar with that crossing can significantly reduce delays. You can browse brokers by US port of entry to find specialists at the crossing you use most.
Real-World Import Scenarios
Scenario 1: Importing Canadian Softwood Lumber
A homebuilder in Texas sources dimensional lumber from a mill in British Columbia. The lumber (HTS 4407.10) is subject to a standing CVD order. The importer must verify the current CVD rate for that specific Canadian producer (rates differ by company), deposit the estimated duty at entry, and be prepared for potential annual review adjustments. A customs broker specializing in wood products can help the importer determine the exact rate and avoid underpaying — which would trigger a bill with interest from CBP.
Scenario 2: Importing Canadian Canola Oil for Food Manufacturing
A food manufacturer in Ohio imports bulk canola oil (HTS 1514.11) from a crusher in Alberta. The oil qualifies for 0% USMCA tariff treatment because it is wholly obtained in Canada. The importer must provide a self-certified USMCA certification of origin from the Canadian seller. Additionally, because this is a food product, FDA Prior Notice must be filed before the shipment arrives. A customs broker with food and agriculture experience — find one through our specialty directory — handles both the CBP entry and the FDA notification.
Scenario 3: Auto Parts for a US Assembly Plant
A Michigan manufacturer imports stamped steel body panels (HTS 8708.29) from a Canadian supplier. The panels use North American steel and are manufactured in Ontario. The importer claims USMCA preferential treatment under the tariff shift rule. Because automotive parts require precise RVC calculations, the importer retains detailed cost breakdown documentation from the Canadian producer to support any future CBP audit. Learn more about what this kind of work entails in our guide to 10 core duties of a customs broker.
Common Mistakes Importers Make with Canadian Goods
Assuming USMCA Applies Automatically
USMCA preferential treatment is not automatic. It must be claimed on the entry filing, and it requires documentation to back it up. Many importers — especially smaller businesses — pay full MFN (Most Favored Nation) duty rates on Canadian goods that would have qualified for 0% had they claimed USMCA. Review every Canadian import for USMCA eligibility before filing.
Ignoring AD/CVD Orders on Lumber
The softwood lumber AD/CVD orders have been in place in various forms for decades, but importers new to lumber sourcing often don’t know they exist. Importing lumber without checking current duty rates can result in large unexpected duty bills and interest charges. Always check enforcement.trade.gov/adcvd before sourcing Canadian lumber.
Misclassifying Goods Under the HTS
Canadian goods are not exempt from HTS classification requirements. Misclassification — whether intentional or accidental — can result in underpayment of duties, penalties under 19 USC 1592, and loss of USMCA eligibility. Use hts.usitc.gov for classification research and consider a binding ruling from CBP if classification is genuinely uncertain.
Underestimating Perishable Food Timelines
Agricultural imports — especially fresh produce, live animals, and chilled meat — are time-sensitive. Delays at the border due to incomplete documentation, missing FDA Prior Notice, or inspection holds can result in spoilage and financial loss. Work with a broker experienced in perishables and build documentation lead times into your logistics plan.
Not Retaining Records for Five Years
Under 19 CFR Part 163, importers must retain entry records — including USMCA certifications — for five years from the date of entry. CBP can audit entries within that window. Importers who discard records early have no defense if questioned. Digital recordkeeping systems make this straightforward.
Tools and Resources for Importers of Canadian Goods
| Resource | What It’s For |