Uncertainty created by the “Liberation Day” policies announced by the US in April contributed to a drop in trade between the US and Canada for the year, and also led to greater efforts by both countries to increase exports abroad.

The renegotiation of the USMCA, which governs trade between the US, Mexico and Canada, is scheduled for later in 2026. Until this is finalized, tariff uncertainty will continue.

The US imported 3.2 million tons of polyethylene (all grades) from Canada in 2025, down 3%. Canada imported 0.9 million tons from the US, down 6%.

Imports surged in both directions across the border early in the year as buyers preemptively stockpiled polymer, but then steadied for most of the remainder of the year as it became clearer that polymer imports that complied with the rules of origin in the existing USMCA would continue to receive preferential treatment.

Although trade between the two countries was down, each exported more polymer elsewhere. The US exported a total of 15.7 million tons (including the 0.9 million tons to Canada), up 7% on gains to every other region. Canada exported 4.0 million tons (including the 3.2 million tons to US), up 5%, on large percentage gains to China, Mexico and other destinations.

From International Trader Publications’ World Trade Analyses on all grades of polyethylene, continuously updated global analysis based on the latest statistics from all available countries.