Canada’s Economic Pivot Away From the U.S., by the Numbers

Canada is steadily loosening its economic dependence on the United States as trade tensions with the Trump administration drag on, according to a data analysis published by CNN. The figures span trade, tourism, consumer spending and investment.

Trade: the U.S. share is shrinking

For decades, 70% to 80% of Canada’s exports went to the United States. That share has fallen since President Donald Trump returned to office, to the lowest level in nearly 30 years, according to the analysis. This summer the U.S. imposed 50% tariffs on roughly $20 billion of Canadian goods and banned some imports outright, after 50% tariffs on steel and aluminum in 2025. Canada has matched U.S. tariffs and says it will continue to do so.

A new partnership with Europe

Canada is building closer ties with the European Union and is set to become the bloc’s first “associate member.” Prime Minister Mark Carney and European Commission President Ursula von der Leyen launched an “Alliance for the Future” at a summit in Montreal. Carney told European lawmakers that economic integration was being “weaponized” through tariffs. Few details of the partnership have been released, and it has drawn criticism in Canada over sovereignty concerns.

Tourism and consumers

• Canadian visits to the U.S. fell to 29.1 million in 2025, the lowest outside the pandemic since records began in 1972.
• Canadian spending in the U.S. dropped from $16.1 billion in 2024 to $13.4 billion in 2025.
• Provincial liquor boards pulled American alcohol from shelves in March 2025, sending U.S. spirits exports to Canada to a record low before a partial rebound.

Investment

Canadian investors still put a net C$78.1 billion into U.S. stocks in the first half of 2026, but sold a record C$31 billion in July, much of it in large U.S. technology companies.

What this means for investors and businesses

The data point to a gradual reorientation rather than a clean break: the U.S. remains Canada’s largest trading partner and a major destination for Canadian capital. But companies on both sides of the border that depend on cross-border supply chains, tourism or Canadian consumers face a less predictable market, and Canadian exporters are looking harder at Europe and Asia.

Source: CNN