Total trade value

Canadian total trade in 2025 is projected to decline slightly, reaching $1.5 trillion, a 1.3% fall from 2024, driven largely by rising tariffs with the US and China and the resulting pressures these exert on both import and export flows. The imposition of tariffs and corresponding retaliation has disrupted the usual volume of cross-border business with the US, Canada's dominant partner, while sharply curtailing growth that previously characterized the years following the pandemic downturn. The impact is particularly acute for sectors with high US exposure such as automotive, energy and agricultural commodities. At the same time, China's introduction of new tariffs on Canadian agricultural exports has complicated diversification strategies. These shocks to the trade environment come amid persistent volatility in global commodity prices and currency markets, factors which have further constrained trade expansion in the short term.

Over the period from 2020 to 2025, Canadian total trade was characterized by marked upheaval and a strong though uneven rebound. The pandemic caused an abrupt contraction in 2020, with total trade falling to $1.3 trillion as supply chain disruptions, border closures, and suppressed consumer and investment demand took hold. Rebound in 2021 and 2022 was robust but both non-static and non-linear, with key drivers being the reopening of global economies, the unwinding of restrictions and pent-up demand. By 2024, total trade had recovered to $1.5 trillion, exceeding pre-pandemic levels. The energy, automotive, and consumer goods sectors all contributed to the resurgence but remained highly sensitive to supply chain and demand shocks. Throughout this period, volatile exchange rates, extreme swings in commodity prices, and shifting geopolitical realities—such as war in Ukraine and the rapid global push for decarbonization—created a constantly changing context for trade flows. These macroeconomic challenges prompted Canadian policymakers and businesses to prioritize diversification of trade partners—particularly in Asia-Pacific—while enhancing digital trade capabilities, investment in logistics and supply chain resilience, and regulatory compliance with emerging sustainability standards. As a result, total trade grew at a CAGR of 2.7% from 2020 to 2025, but with significant quarterly and sectoral volatility.

Policy and business emphasis on flexibility and resilience came to the forefront during this period as external shocks—trade disputes, global economic cycles, and shifts toward clean technology—demanded rapid adjustment. The ongoing transition towards sustainable products and improved digital supply chain management reinforced the need for agility, shaping both market access strategies and sectoral investments.