U.S. Markets open in 5 hrs 2 mins

States Most Dependent on Trade With Canada

Samuel Stebbins

The United States Department of Commerce imposed on Monday a 20% import tax on softwood lumber from Canada. The measure is the latest indication of mounting economic tensions between the U.S. and its northern ally. In a press release, U.S. Secretary of Commerce Wilbur Ross said, "It has been a bad week for U.S.-Canada trade relations.”

The U.S. imported $278.1 trillion worth of goods from Canada in 2016. Softwood lumber accounted for $5.6 billion of the imports.

The new import tax is widely viewed as a reaction to allegations that the Canadian government is effectively subsidizing its lumber industry. Canada has for decades permitted companies to log government land at below market cost, leading to competitive disadvantages for American lumber companies. For many, including Secretary Ross, this is perceived as a violation of the North American Free Trade Agreement.

ALSO READ: Why Aircraft Carriers Are Hard to Sink

NAFTA also stipulates that goods be freely traded, without import taxes, between the United States, Canada, and Mexico.

President Donald Trump was an outspoken critic of NAFTA on the campaign trail, famously referring to it as “the worst trade deal” in U.S. history. The new tariff may actually be a negotiation tactic, as Secretary Ross was appointed to be a critical player in the Trump administration’s stated plans to overhaul NAFTA.

The tariff’s effects could have far reaching implications for economic relations between the United States and Canada. Many states are heavily dependent on Canada as a trading partner. At least one-quarter of all imports in 13 states come from Canada. Some 82.5% of Montana’s imports originate in Canada.

On the other side of the coin, 17 states send at least 25% of all exports to Canada. Canada imported $3.2 billion worth of goods from North Dakota in 2016, or about 77.6% of the state’s total exports that year.

24/7 Wall St. reviewed 2016 import and export data for all 50 U.S. states and Canada. States were ranked by the total share of imports originating in Canada. All data is from the U.S. Census Bureau.

50. Louisiana
> Share of imports from Canada: 4.6%
> Value of Canadian imports: $1.5 billion (16th smallest)
> Share of exports to Canada: 5.5% (2nd smallest)
> Value of exports to Canada: $2.7 billion (25th largest)

49. Georgia
> Share of imports from Canada: 4.6%
> Value of Canadian imports: $4.0 billion (17th largest)
> Share of exports to Canada: 16.4% (19th smallest)
> Value of exports to Canada: $5.8 billion (15th largest)

48. Rhode Island
> Share of imports from Canada: 4.6%
> Value of Canadian imports: $405.5 million (4th smallest)
> Share of exports to Canada: 23.2% (18th largest)
> Value of exports to Canada: $527.1 million (6th smallest)

47. Delaware
> Share of imports from Canada: 5.8%
> Value of Canadian imports: $438.1 million (5th smallest)
> Share of exports to Canada: 12.2% (15th smallest)
> Value of exports to Canada: $542.7 million (7th smallest)

46. Florida
> Share of imports from Canada: 5.8%
> Value of Canadian imports: $4.3 billion (14th largest)
> Share of exports to Canada: 6.6% (4th smallest)
> Value of exports to Canada: $3.5 billion (20th largest)

45. Maryland
> Share of imports from Canada: 6.1%
> Value of Canadian imports: $1.9 billion (19th smallest)
> Share of exports to Canada: 15.5% (18th smallest)
> Value of exports to Canada: $1.4 billion (19th smallest)

44. Mississippi
> Share of imports from Canada: 6.5%
> Value of Canadian imports: $908.9 million (11th smallest)
> Share of exports to Canada: 20.7% (21st largest)
> Value of exports to Canada: $2.2 billion (25th smallest)

43. Texas
> Share of imports from Canada: 6.6%
> Value of Canadian imports: $15.2 billion (5th largest)
> Share of exports to Canada: 8.5% (5th smallest)
> Value of exports to Canada: $19.9 billion (2nd largest)

42. Arizona
> Share of imports from Canada: 6.7%
> Value of Canadian imports: $1.3 billion (14th smallest)
> Share of exports to Canada: 9.4% (7th smallest)
> Value of exports to Canada: $2.1 billion (23rd smallest)

41. California
> Share of imports from Canada: 6.8%
> Value of Canadian imports: $27.8 billion (2nd largest)
> Share of exports to Canada: 9.9% (9th smallest)
> Value of exports to Canada: $16.2 billion (4th largest)

40. New Jersey
> Share of imports from Canada: 6.8%
> Value of Canadian imports: $7.3 billion (10th largest)
> Share of exports to Canada: 20.3% (23rd largest)
> Value of exports to Canada: $6.3 billion (13th largest)

39. Tennessee
> Share of imports from Canada: 6.8%
> Value of Canadian imports: $5.1 billion (13th largest)
> Share of exports to Canada: 27.6% (14th largest)
> Value of exports to Canada: $8.7 billion (9th largest)

38. North Carolina
> Share of imports from Canada: 7.1%
> Value of Canadian imports: $3.4 billion (19th largest)
> Share of exports to Canada: 21.1% (19th largest)
> Value of exports to Canada: $6.3 billion (14th largest)

37. Virginia
> Share of imports from Canada: 7.4%
> Value of Canadian imports: $1.9 billion (20th smallest)
> Share of exports to Canada: 17.5% (23rd smallest)
> Value of exports to Canada: $2.9 billion (24th largest)

36. Hawaii
> Share of imports from Canada: 7.8%
> Value of Canadian imports: $229.5 million (the smallest)
> Share of exports to Canada: 5.7% (3rd smallest)
> Value of exports to Canada: $71.2 million (the smallest)

35. South Carolina
> Share of imports from Canada: 8.1%
> Value of Canadian imports: $2.9 billion (21st largest)
> Share of exports to Canada: 11.1% (12th smallest)
> Value of exports to Canada: $3.5 billion (19th largest)

34. Nevada
> Share of imports from Canada: 8.6%
> Value of Canadian imports: $906.1 million (10th smallest)
> Share of exports to Canada: 14.1% (17th smallest)
> Value of exports to Canada: $1.4 billion (17th smallest)

33. Kentucky
> Share of imports from Canada: 8.6%
> Value of Canadian imports: $3.4 billion (18th largest)
> Share of exports to Canada: 25.6% (17th largest)
> Value of exports to Canada: $7.5 billion (10th largest)

32. Alabama
> Share of imports from Canada: 9.4%
> Value of Canadian imports: $2.1 billion (22nd smallest)
> Share of exports to Canada: 20.0% (24th largest)
> Value of exports to Canada: $4.1 billion (17th largest)

31. Arkansas
> Share of imports from Canada: 9.6%
> Value of Canadian imports: $752.0 million (9th smallest)
> Share of exports to Canada: 20.4% (22nd largest)
> Value of exports to Canada: $1.2 billion (11th smallest)

30. New Mexico
> Share of imports from Canada: 11.3%
> Value of Canadian imports: $259.8 million (2nd smallest)
> Share of exports to Canada: 3.7% (the smallest)
> Value of exports to Canada: $136.0 million (2nd smallest)

29. Pennsylvania
> Share of imports from Canada: 13.0%
> Value of Canadian imports: $10.0 billion (8th largest)
> Share of exports to Canada: 27.2% (15th largest)
> Value of exports to Canada: $9.9 billion (8th largest)

28. New York
> Share of imports from Canada: 13.6%
> Value of Canadian imports: $17.7 billion (4th largest)
> Share of exports to Canada: 16.9% (21st smallest)
> Value of exports to Canada: $12.6 billion (6th largest)

27. Connecticut
> Share of imports from Canada: 13.6%
> Value of Canadian imports: $2.9 billion (22nd largest)
> Share of exports to Canada: 11.3% (13th smallest)
> Value of exports to Canada: $1.6 billion (21st smallest)

ALSO READ: The Drunkest (and Driest) Cities in America

26. Oregon
> Share of imports from Canada: 14.1%
> Value of Canadian imports: $2.5 billion (24th smallest)
> Share of exports to Canada: 9.8% (8th smallest)
> Value of exports to Canada: $2.2 billion (24th smallest)

25. Kansas
> Share of imports from Canada: 14.6%
> Value of Canadian imports: $1.6 billion (17th smallest)
> Share of exports to Canada: 17.4% (22nd smallest)
> Value of exports to Canada: $1.8 billion (22nd smallest)

24. Indiana
> Share of imports from Canada: 14.7%
> Value of Canadian imports: $7.3 billion (11th largest)
> Share of exports to Canada: 33.1% (9th largest)
> Value of exports to Canada: $11.5 billion (7th largest)

23. Utah
> Share of imports from Canada: 15.4%
> Value of Canadian imports: $2.0 billion (21st smallest)
> Share of exports to Canada: 10.9% (10th smallest)
> Value of exports to Canada: $1.3 billion (14th smallest)

22. Missouri
> Share of imports from Canada: 17.2%
> Value of Canadian imports: $3.0 billion (20th largest)
> Share of exports to Canada: 37.4% (8th largest)
> Value of exports to Canada: $5.2 billion (16th largest)

21. Ohio
> Share of imports from Canada: 17.9%
> Value of Canadian imports: $11.5 billion (7th largest)
> Share of exports to Canada: 38.8% (6th largest)
> Value of exports to Canada: $19.1 billion (3rd largest)

20. Wisconsin
> Share of imports from Canada: 18.2%
> Value of Canadian imports: $4.1 billion (16th largest)
> Share of exports to Canada: 31.4% (10th largest)
> Value of exports to Canada: $6.6 billion (12th largest)

19. Nebraska
> Share of imports from Canada: 20.4%
> Value of Canadian imports: $727.4 million (8th smallest)
> Share of exports to Canada: 19.0% (25th smallest)
> Value of exports to Canada: $1.2 billion (13th smallest)

18. Illinois
> Share of imports from Canada: 20.8%
> Value of Canadian imports: $25.3 billion (3rd largest)
> Share of exports to Canada: 26.5% (16th largest)
> Value of exports to Canada: $15.9 billion (5th largest)

17. Massachusetts
> Share of imports from Canada: 21.4%
> Value of Canadian imports: $7.3 billion (12th largest)
> Share of exports to Canada: 11.7% (14th smallest)
> Value of exports to Canada: $3.0 billion (23rd largest)

16. Idaho
> Share of imports from Canada: 22.2%
> Value of Canadian imports: $998.2 million (12th smallest)
> Share of exports to Canada: 19.3% (25th largest)
> Value of exports to Canada: $938.7 million (10th smallest)

ALSO READ: Countries With the Fastest Growing and Shrinking Militaries

15. Colorado
> Share of imports from Canada: 22.6%
> Value of Canadian imports: $2.8 billion (24th largest)
> Share of exports to Canada: 17.6% (24th smallest)
> Value of exports to Canada: $1.3 billion (15th smallest)

14. Alaska
> Share of imports from Canada: 22.9%
> Value of Canadian imports: $478.6 million (6th smallest)
> Share of exports to Canada: 11.1% (11th smallest)
> Value of exports to Canada: $485.0 million (5th smallest)

13. Washington
> Share of imports from Canada: 27.1%
> Value of Canadian imports: $12.8 billion (6th largest)
> Share of exports to Canada: 8.8% (6th smallest)
> Value of exports to Canada: $7.0 billion (11th largest)

12. Minnesota
> Share of imports from Canada: 27.7%
> Value of Canadian imports: $7.5 billion (9th largest)
> Share of exports to Canada: 21.1% (20th largest)
> Value of exports to Canada: $4.0 billion (18th largest)

11. Iowa
> Share of imports from Canada: 29.8%
> Value of Canadian imports: $2.5 billion (23rd smallest)
> Share of exports to Canada: 27.6% (13th largest)
> Value of exports to Canada: $3.4 billion (21st largest)

10. Oklahoma
> Share of imports from Canada: 30.0%
> Value of Canadian imports: $2.5 billion (25th smallest)
> Share of exports to Canada: 27.9% (12th largest)
> Value of exports to Canada: $1.4 billion (18th smallest)

9. West Virginia
> Share of imports from Canada: 33.2%
> Value of Canadian imports: $1.1 billion (13th smallest)
> Share of exports to Canada: 30.4% (11th largest)
> Value of exports to Canada: $1.5 billion (20th smallest)

8. South Dakota
> Share of imports from Canada: 35.0%
> Value of Canadian imports: $361.5 million (3rd smallest)
> Share of exports to Canada: 37.6% (7th largest)
> Value of exports to Canada: $454.8 million (4th smallest)

7. Michigan
> Share of imports from Canada: 35.8%
> Value of Canadian imports: $48.3 billion (the largest)
> Share of exports to Canada: 43.1% (4th largest)
> Value of exports to Canada: $23.5 billion (the largest)

6. New Hampshire
> Share of imports from Canada: 49.6%
> Value of Canadian imports: $4.3 billion (15th largest)
> Share of exports to Canada: 13.4% (16th smallest)
> Value of exports to Canada: $555.1 million (8th smallest)

5. Maine
> Share of imports from Canada: 50.8%
> Value of Canadian imports: $1.7 billion (18th smallest)
> Share of exports to Canada: 47.2% (2nd largest)
> Value of exports to Canada: $1.4 billion (16th smallest)

4. North Dakota
> Share of imports from Canada: 53.2%
> Value of Canadian imports: $1.4 billion (15th smallest)
> Share of exports to Canada: 77.6% (the largest)
> Value of exports to Canada: $3.2 billion (22nd largest)

3. Wyoming
> Share of imports from Canada: 61.8%
> Value of Canadian imports: $541.4 million (7th smallest)
> Share of exports to Canada: 16.8% (20th smallest)
> Value of exports to Canada: $185.7 million (3rd smallest)

2. Vermont
> Share of imports from Canada: 69.3%
> Value of Canadian imports: $2.6 billion (25th largest)
> Share of exports to Canada: 39.7% (5th largest)
> Value of exports to Canada: $1.2 billion (12th smallest)

1. Montana
> Share of imports from Canada: 82.5%
> Value of Canadian imports: $2.9 billion (23rd largest)
> Share of exports to Canada: 45.7% (3rd largest)
> Value of exports to Canada: $614.1 million (9th smallest)

Related Articles