California exports nearly $17 billion in goods to Canada. How will tariffs impact the state?
A trade war between the United States and Canada could have ripple effects in California.
That’s because Canada is California’s second-largest export market after Mexico. Nearly $17 billion in goods were sent to our northern neighbor in 2025, according to government data. California imported $15.43 billion from Canada in return.
(Video above: How the US-Canada trade war could hit consumers, farmers, businesses.)
After trade negotiations broke down last Friday, President Donald Trump’s administration imposed 50% tariffs on about $20 billion of Canadian goods, which covers about 5% of Canadian exports, The Associated Press reported. (See the list below.)
Canada responded by announcing $20 billion in retaliatory tariffs on American goods, affecting more than 700 products, starting Sept. 8.
Canada’s government said its tariffs would focus on sectors “that are most impacted by U.S. tariffs,” which include steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
KCRA 3 reached out to the California Chamber of Commerce and the California Manufacturers and Technology Association for a response to Canada’s retaliatory tariffs and how they could impact the state.
A CalChamber representative said the group was still reviewing the details.
“We’re disappointed in the breakdown of U.S.-Canada trade negotiations, where we will now experience higher prices on Canadian imports and new and impactful tariffs on products made and grown in California, as Canada is a top export partner for our state,” Susanne Stirling, CalChamber’s senior vice president for international affairs, said in a statement. “These tariffs could have a notable effect on our economy. We urge U.S. and Canadian officials to work together on a solution that charts a reasonable course forward for the flow of commerce and products, as well as the continuation of U.S.-Mexico-Canada Agreement negotiations.”
CMTA’s President & CEO Lance Hastings said, “Automotive and auto parts manufacturers, along with any company that relies on Canadian steel and aluminum, are just a few of the industries most exposed as these trade tensions escalate. California manufacturers operate in a just-in-time global marketplace, and rapid shifts in trade policy add cost and uncertainty for companies with cross-border supply chains. California manufacturers are caught in the crossfire, when what we seek is more economic stability.”
A closer look at the California-Canada trade relationship, according to Canada’s government.
These are the top categories of California exports to Canada:
Fruits & nuts: $1.7 billionComputers: $1.1 billionOptical, medical & precision instruments: $1 billionTelephones & AV recording equipment: $1 billionAutomobiles: $858 millionVegetables: $808 millionPrepared vegetables: $427 millionAircraft & parts: $394 millionPlastics & plastic articles: $316 millionToys, games, sporting & recreation equipment: $315 million
These are the top California service exports to Canada:
Business services: $4.6 billionCharges for the use of intellectual property: $4.5 billionTravel (including for education): $3.3 billionTelecommunications, computer & IT services: $1.8 billionFinancial services: $1.2 billion
This is the percentage of goods to Canada annually that California exports by industry:
Agriculture: 26%Chemicals: 7%Equipment & machinery: 39%Minerals & metals: 5%Transportation: 13%Other: 10%
This is the percentage of goods that California imports from Canada by industry:
Agriculture: 30%Chemicals: 5%Energy: 21%Equipment & machinery: 16%Forest products: 6%Minerals & metals: 6%Plastics & rubbers: 5%Transportation: 4%Other: 7%
These are the top California goods imported from Canada:
Crude petroleum: $2.4 billionAnimal or vegetable fats, oils & waxes: $1.0 billionAnimal meats: $794 millionPasta, breads & cereal preparations: $614 millionPlastics & plastic articles: $555 millionOptical, medical & precision instruments: $550 millionAnimal feed & food industry residues: $476 millionFuel oil: $422 millionWood & semi-finished wood products: $413 millionFurniture & bedding: $366 millionSee more data about the overall U.S. trade relationship with Canada below.
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