As the Trump administration goes back and forth on blanket tariffs against imports from Canada and Mexico, a report from the U.S. Department of Transportation estimates that the country's northern and southern neighbors were responsible for 30% of all U.S. international trade in 2024. 

The DOT's annual "TransBorder Freight Report" for 2024 tracked a 1.8% year-over-year increase in U.S. freight flows combined between Canada and Mexico, totaling roughly $1.6 trillion. Freight flows rose by nearly 21%, by dollar value, between 2021 and 2024 as well, largely driven by truck and rail, which accounted for more than 77% of all freight flows by value in 2024.  

"Manufacturing and logistics sectors across North America are linked and interdependent," the report reads, noting that Canada and Mexico are the United States' largest trade partners for agricultural goods. "America’s land borders with Canada and Mexico are economically vital conduits for North American supply chains, with nearly $3.5 billion in daily cross-border freight shipments."

Read More: Survey — Trade Wars Becoming New Normal for Supply Chains

President Donald Trump initially planned to enact 25% tariffs against Mexico and Canada in February. Since then, he's delayed the levies twice, while both Mexico and Canada have signaled a willingness to enact duties against a range of U.S. products. That includes tariffs that Canada started rolling out in mid-March, impacting C$20 billion ($13.9 billion) worth of U.S. goods. 

Speaking to BBC News, Canada's Foreign Minister Mélanie Joly expressed confidence that the country could compete with the U.S. in the event of a full-blown trade war. 

"We are the biggest customer of the U.S.," Joly said. "We buy more from the Americans than China, Japan, the U.K. and France combined."

Canada has snap elections scheduled for April 28, following the resignation of Prime Minister Justin Trudeau, which took effect on March 9. Leaders with both parties vying for the office have stressed the need to shield Canada from the Trump administration's adversarial approach to trade, and from Trump's repeated insistence on making Canada the "51st state."