Canada is a main source of crude oil imports and industrial supplies like steel for the United States. More than 71% of U.S. crude oil imports were supplied by Canada and Mexico in 2023, according to a new report from the Congressional Budget Office (CBO). Of that share, 60% of oil came from Canada.

Every day a flurry of parts and products are shuttled between Texas and Mexico, part of a cross-border supply chain to make everything from cars and heavy duty machinery to flat screen televisions. The future of that partnership,

President Donald Trump's threats to impose punishing tariffs on Canada and Mexico may be part of a strategy to gain leverage ahead of new negotiations on a regional trade agreement, experts said.