Here are Canada's biggest points of leverage in tariff and trade talks with the U.S.

While Canada's economy is far more reliant on exports to the U.S. than vice versa, Canadian negotiators have crucial ammunition in their efforts to land a trade deal that reduces or eliminates tariffs imposed by U.S. President Donald Trump.

Before Trump launched his tariff war, roughly 76 per cent of Canada's exported goods went to the U.S., while just 17 per cent of U.S. exported goods were destined to Canada.

The U.S. hunger for Canadian exports exposes the falsehood in Trump's repeated claims that his country doesn't need anything from Canada. Meanwhile, U.S. industries have told the administration that cross-border trade is essential to their success.

Canada's attempts to negotiate relief from Trump's tariffs on such exports as steel, aluminum, automobiles and softwood lumber are now wrapped into fresh talks on renewing the Canada-U.S.-Mexico Agreement (CUSMA).

Here's a look at what leverage the Canadian side has in trying to carve out the best possible deal.

U.S. companies don't want to miss out on the opportunity to sell products to an affluent market of some 40 million people right on their country's doorstep.

U.S. exports of goods to Canada totalled about $350 billion US in 2024, and exports of services were worth another $90 billion US, according to figures from the U.S. Trade Representative.

Barry Appleton, a Canadian American lawyer, says Canada needs to shift its strategy in negotiating with the Trump administration by exerting its leverage as a crucial U.S. customer.

"We are the biggest consumer for the United States in the services economy," said Appleton, who holds posts at both the New York Law School's Center for International Law and the Balsillie School of International Affairs in Waterloo, Ont.

"Look at all the leverage Canada had when we cut off American bourbon," he said. "Think about what would happen if we were to use that leverage on the AI economy, if we're going to use that leverage on the digital economy, if we're going to be using that leverage on all the types of things where we are consumers."

The U.S. imported an average of 3.9 million barrels per day of crude oil from Canada in 2025, more than it imported from all other nations in the world combined.

Considering all forms of energy, including petroleum products, electricity and natural gas, the U.S. imports more than four times as much energy from Canada as it exports north of the border.

The U.S.-Israel war with Iran pushed up the global price of crude oil, only underscoring Canada's leverage in the energy sector. If the U.S. wants to secure even more crude from Canada, that can be a massive bargaining chip in negotiations.

Inu Manak, a senior fellow for international trade at the Council on Foreign Relations think-tank in Washington, says the U.S. needs Canadian natural resources to achieve the industrial policy goals set out by the Trump administration.