Top 10 products Imported to Canada: Canada imports many different things to meet its needs. Some of the top products it imports include vehicles, machinery, electronics, pharmaceuticals, and other goods that people use every day. These imports help Canadian businesses and people get what they need to keep things running smoothly.
In 2022, it bought $567.4 billion worth of stuff from abroad, which is a lot more than before. The value of things Canada buys has been increasing each year. For example, in 2021, it was $489.7 billion. The Canadian dollar got a bit weaker compared to the US dollar during this time, which meant buying things from other countries became a bit more expensive.
Let us more!
Top 10 products Imported to Canada
|
Product
|
Value
|
|
Mineral & Phosphate Mining
|
$245.1B
|
|
SUV & Light Truck Manufacturing
|
$34.3B
|
|
Generic Pharmaceutical
|
$26.3B
|
|
Petroleum Refining
|
$23.3B
|
|
Oil Drilling & Gas Extraction
|
$20.5B
|
|
Aircraft, Engine & Parts
|
$17.4B
|
|
Auto Parts
|
$17.4B
|
|
Pharmaceutical
|
$16.5B
|
|
Iron & Steel
|
$12.3B
|
|
Plastic & Resin Manufacturing
|
$11.7B
|
1. Mineral & Phosphate Mining
In Canada, mineral and phosphate mining companies extract various non-metallic minerals, with a focus on potash production. Potash is a crucial ingredient used by fertilizer makers worldwide, and Canada leads as the largest producer and exporter of this mineral.
In 2016, there was a significant drop in potash prices due to competition following the dissolution of the Belarusian Potash Company, a major player in global potash markets. However, prices have rebounded since then, and the revenue from mineral and phosphate mining is expected to grow by 7.9% in 2023 alone.
2. SUV & Light Truck Manufacturing
In Canada, companies that make SUVs and light trucks expect to earn less money in 2023. This is because of problems caused by COVID-19 and uncertain economic conditions. Most of their business comes from selling to other countries, with the United States being the biggest buyer. But since the US economy isn’t doing so well, these Canadian companies are struggling too. Even though things started to get better after COVID-19 these companies still aren’t making as many vehicles as before.
Over the past five years their business has been shrinking by about 7.4% each year. In 2023, they’re expected to make around $34.4 billion, which is a 0.7% drop from before.
3. Generic Pharmaceutical
Over the past five years until 2023 Canadian companies making generic drugs have been selling more of their products compared to brand-name drugs. The prices of generic drugs in Canada have dropped by more than half in the last ten year according to data from 2021. To save money on healthcare, many provinces and territories have put stricter limits on how much generic drugs can cost. This helps keep the prices of generic drugs from being higher than a certain percentage of the price of brand-name drugs.
4. Petroleum Refining
The Canadian Petroleum Refining industry’s earnings have been up and down. The price of crude oil is the main factor affecting how much money the industry makes because it is what they use to make their products. In 2017, the industry did well after the price of crude oil went back up following a drop the year before. But in 2020, when the COVID-19 pandemic hit and oil prices fell, the industry didn’t do as well.
After the pandemic, demand for oil went back up and caused prices to rise, which helped the industry make more money in 2021 and 2022. Overall, the industry’s earnings are expected to go up by an average of 4.0% each year reaching $104.7 billion in total by 2023. However, in 2023 the industry’s earnings are expected to go down by 12.0% because oil prices are expected to go down.
5. Oil Drilling & Gas Extraction
Oil drilling and gas extraction in Canada have grown a lot because prices went up and companies invested more in production. In 2020, during the pandemic, oil and gas companies had a hard time because prices fell a lot when everything shut down. But when the economy started opening up again, the demand for oil and gas went up, so prices went way up too which helped companies make more money.
Overall, the money they make is expected to keep growing by about 7.4% every year until 2023 even though it might go down by 22.2% in 2023 alone. The profit companies make has also been up and down. Many companies didn’t make any profit at all, and some even lost money, before things started getting better after the pandemic.
6. Aircraft, Engine & Parts
Revenue for aircraft engine, engine, and parts manufacturing has been going down over the last five years because of unstable economic conditions. In Canada, the industry is known for making different kinds of aircraft, like small business planes, commercial planes with fewer than 150 seats, civil helicopters and small engines. It also makes various parts for airplanes.
The COVID-19 pandemic made things even harder for the industry because people weren’t traveling as much. Over the last five years, the money the industry makes is estimated to have gone down by an average of 3.3% every year, and it was about $21.5 billion in 2023. But it’s expected to go up by 3.7% in 2023 as more people start traveling again and production picks up.
7. Auto Parts
Auto parts manufacturers make various parts and equipment for cars, like exhaust systems, airbags, and air conditioning systems. They faced big challenges during the COVID-19 pandemic because less people were traveling and making cars which made their money go down. But now that more people are driving again after getting vaccinated there’s more need for fixing cars, which has helped them make more money.
However, interest rates going up have been a problem for the whole car-making industry. When it’s more expensive to borrow money or get a loan for a car, fewer people buy new cars. Overall the money they make has been going up by about 1.2% every year, and in 2024, it went up by 1.9% reaching 8.7% in profit.
8. Pharmaceutical
In Canada, companies making brand-name medicines face tough competition from generic drugs. To stay competitive they are improving their products and attracting more customers. Many brand-name drugs lost their patent protection so companies are making their operations more efficient. They’re teaming up with other companies and universities to share the costs of research and development. This helps them invest more in developing new medicines, especially biopharmaceuticals.
9. Iron & Steel
Iron and steel are essential materials used in various industries for construction, manufacturing, and infrastructure. In Canada, iron and steel production involves melting and refining iron ore to produce pig iron, which is then processed into steel and shaped into different forms. However, the industry is influenced by fluctuating steel prices which have become more volatile since the COVID-19 pandemic. Despite challenges, revenue in the iron and steel sector is projected to grow steadily at a compound annual growth rate (CAGR) of 3.0% to reach $18.9 billion by the end of 2023. However there might be a decline of 6.9% in 2023 alone.
10. Plastic & Resin Manufacturing
Plastic and resin manufacturers have experienced ups and downs in their revenue due to changes in the economy. During the pandemic, revenue went down because many industries they supply to were closed or not working at full capacity. As things started getting better, the prices of crude oil and natural gas went up a lot. This made the raw materials for making plastic and resin more expensive. So, manufacturers had to increase their prices too sometimes even without making much profit just to keep selling their products.
Canada’s Top Trading Partners
The United States buys the most from Canada, with $337 billion worth of goods, making up 75.4% of all Canadian exports. China comes next, buying $18 billion worth of Canadian goods, followed by the United Kingdom at $15 billion, Japan at $9 billion, and Mexico at $6 billion.
The US and China are the top two importers and exporters of Canadian goods. The US is Canada’s biggest trading partner because the two countries have closely connected supply chains. There is a lot of potential for trade between them, which can help businesses grow by exporting goods from Canada or importing them into Canada for sale.
United States—$337 billion (USD) (75.4% of total Canadian exports)
China—$18 billion (USD) (3.9% of total Canadian exports)
United Kingdom—US $15 billion (3.3% of total Canadian exports)
Japan—US$9 billion (2.1% of total Canadian exports)
Mexico—US$6 billion (1.2% of total Canadian exports)
Conclusion
Canada imports a variety of products that are important for its economy and people. These include machinery, vehicles, mineral fuels, and more. From machinery and electrical equipment to vehicles and mineral fuels, these imports play a crucial role in sustaining Canada’s economy and supporting various sectors.
As Canada continues to engage in international trade understanding the trends and dynamics of these import categories is important for businesses and policymakers alike to make informed decisions and ensure continued economic growth and prosperity.
1. Immigration Policy of Canada 2024
2. Canada Travel Guide
3. National Parks in Canada
4. Canadian History
FAQs on Top 10 products Imported to Canada
What are the top 10 products imported to Canada?
The top 10 products imported to Canada include machinery, vehicles, mineral fuels, electrical machinery, plastics, pharmaceuticals, optical and medical equipment, aircraft, iron and steel, and furniture.
Where do these imports come from?
These imports come from various countries around the world, including the United States, China, Mexico, Germany, and Japan, among others.
What is Canada’s biggest import?
Automobiles and automobile parts is the biggest import of Canada.
What is Canada’s main source of income?
In Canada, most people work in services like retail, healthcare, and banking. But many other developed countries, Canada also relies a lot on industries like forestry and petroleum, which provide natural resources. These industries are really important for the country’s economy.
What is Canada’s highest export?
The most recent exports are led by Crude Petroleum ($81.2B), Cars ($29B), Petroleum Gas ($15B), Gold ($14.3B), and Sawn Wood ($13.3B).
Share your thoughts in the comments
Please Login to comment...