American Product Advantages Versus Canada

Below are the top 10 goods for which United States enjoyed a higher dollar value from its exports to Canada after subtracting what it spent on Canadian imports for those same types of products. Technically, a country’s exports minus imports is known as “net exports” which can be a positive amount (indicating a surplus) or a negative number (indicating a deficit).

1. Trucks: US$9.2 billion surplus win for America
2. Automobile parts/accessories: $7.9 billion
3. Computers, optical readers: $5.8 billion
4. Tractors: $2.9 billion
5. Phone system devices: $2.9 billion
6. Heavy machinery (bulldozers, excavators, road rollers): $2.7 billion
7. Trailers: $2.5 billion
8. Insulated wire/cable: $2.2 billion
9. Transmission shafts, gears, clutches: $1.9 billion
10. Taps, valves, similar appliances: $1.8 billion

Among these, transmission shafts, gears and clutches (up 146.4%) and phone system devices (up 21.3%) increased their net revenues for the US from export sales to Canada by the highest percentages from 2012 to 2014.

Canadian Product Advantages Versus United States

A fossil fuel, crude oil represent the number one export for which Canada shows the strongest sales advantage compared to similar product exports from United States to Canada. In second place are automobiles, representing more sophisticated transportation commodities that benefit from increasing demand as the American economy recovers.

1. Crude oil: US$71.5 billion surplus win for Canada
2. Cars: $27.9 billion
3. Petroleum gases: $9.8 billion
4. Aircraft, spacecraft: $5.1 billion
5. Aluminum (unwrought): $4.4 billion
6. Sawn wood: $4.4 billion
7. Gold (unwrought): $2.9 billion
8. Ethylene polymers: $2.7 billion
9. Aircraft parts: $2.6 billion
10. Potassic fertilizers: $2.5 billion

The fastest-growing Canadian product win versus United States is gold, posting a $58.1 billion surplus, up in value by 58.1% in 2014 compared to 2012.

Canada’s edge over American sawn wood improved in value by 54.6% from 2012 to 2014, while Canadian exports of petroleum gases to the US appreciated by 53.2%.

Final Scorecard for Trade War: United States Versus Canada

Spearheaded by its raw oil shipments, Canada earned an overall $34.4 billion surplus in its international trade with the US during 2014.

From a more granular perspective, the Harmonized Tariff Schedule has 97 product categories at the two-digit summary level. America held positive balances in 61 of those 97 categories (62.9%) for a $93.2 billion subtotal, led by the following:

1. Machinery: $25.7 billion surplus win for America
2. Electronic equipment: $19.8 billion
3. Optical, technical, medical apparatus: $6.4 billion
4. Articles of iron or steel: $3.6 billion
5. Fruits, nuts: $3.3 billion
6. Other chemical goods: $2.6 billion
7. Plastics, plastic articles: $2.5 billion
8. Toys, games: $1.9 billion
9. Beverages, spirits, vinegar:$1.8 billion
10. Books, newspapers, pictures: $1.7 billion

These 10 product categories account for 74.3% of the total value of American product-specific surpluses trading with Canada.

Canada dominated the remaining 36 product categories subtotaling $127.6 billion in surplus, led by the following:

1. Mineral fuels including oil: $84.2 billion surplus win for Canada
2. Wood: $6.1 billion
3. Vehicles : $4.5 billion
4. Aluminum: $4.1 billion
5. Live animals: $2.2 billion
6. Fertilizers: $2.2 billion
7. Woodpulp: $2 billion
8. Gems, precious metals: $1.8 billion
9. Paper: $1.7 billion
10. Copper: $1.6 billion

The above categories represent 90.4% of the total value of Canadian product-specific trade surpluses gained at America’s expense.