Canadian exports to U.S. drop, reach record high for goods sent to other countries

Many Canadian companies are moving away from doing business in the United States amid ongoing tariffs.

As a trade war between Canada and the United States continues into the second half of 2025, new numbers from Statistics Canada show exports to the U.S. are continuing to trend down.

For a fourth straight month, goods heading from north to south have fallen. In May exports to the U.S. dropped by 0.9 per cent. Canada’s share of exports bound to the States was at 68.3 per cent in the same month, which is one of the lowest proportions on record.

Canada’s overall trade deficit fell to $5.9 billion In May, down from a record high of $7.6 billion in April.

While an exchange of goods between the long-standing close trade partners appears to be decreasing, Canadian exports to other countries have reached a record high. In May exports to nations not named the United States rose by 5.7 per cent.

“That’s a very good thing for New Brunswick manufacturers because we do have to expand our territory,” says Canadian Manufacturers and Exporters (CME) Divisional vice-president Ron Marcolin. “That’s a very prudent business thing to do and unfortunately [manufacturers] have been forced into it somewhat, but this is a very good positive story for manufacturers to look beyond just the United States market.”

While the numbers are trending in positive directions for expansion beyond the continent, many businesses continue to struggle with the challenges brought on by tariffs.

A recent survey conducted by CME found three in four manufacturers in Canada are experiencing harm caused by the tariffs, which is slowing growth within their own companies.

“If you think of a business, they want to in 2025, possibly expand and get a new piece of equipment or do any heavy maintenance, but they’ve put those type of projects on hold,” Marcolin says. “The other major thing is hiring. They’re literally just treading water and staying pat as they’re getting through a day, a week, and a month.”

Marcolin says the level of uncertainty and angst among most manufacturers in New Brunswick and beyond hasn’t really changed since the trade war began.

“It affected me pretty severely”

It was another busy day Thursday for Curtis Dionne as his uptown Saint John Glass Roots glass blowing studio. In his custom furnace he creates magical pieces that are displayed throughout his alleyway shop.

“It affected me pretty severely,” says Dionne. “The main thing being the complete drop off of our American sales momentum.”

Dionne says he had big contracts with place like Uncommon Goods and Dollywood – the Tennessee theme park co-owned by legendary country artist Dolly Parton – in place but U.S. businesses have shied away from Canadian goods since the trade war began.

He says in 2024 sales in the U.S. accounted for at least 10 per cent of his overall revenue.

The tariffs have also impacted the price of some the materials needed for his work.

“Our color comes from Germany, and it gets tariff coming into the United States, and then we get it from Seattle here,” he says. “There’s already tons of costs and taxes and import charges that get added to our materials and shipping, and this is just another burden.”