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Trade Partner Profile: Japan

Canadian Economics

By: CBoC Economics Team

Japan is Canada’s fourth largest trade partner, behind the United States, China, and the United Kingdom. In 2024, Canada exported $15 billion goods to Japan and imported $21 billion.

  • Trade between the two countries has been increasing. From 2002 to 2024, exports to Japan have increased by 3.3 on average per year while imports from Japan have increased by an average of 2.0 per cent per year during the same period.
  • Overall, Japan plays a small role in terms of Canada’s global trade. In 2024, Japan represented only 1.9 per cent of exports and 2.8 per cent of imports.
  • Energy and mineral exports make up the bulk of what Canada sells to Japan. Coal, petroleum, copper, and iron combine to account for 41.8 per cent of Canadian exports to Japan.
  • Agricultural and fishing products are also important, making up 26.8 per cent of exports to Japan in 2024.
  • There is opportunity for Canada to expand its energy exports to Japan, given that 22.5 per cent of Japan’s total imports are energy related.
  • There is also opportunity to export more pharmaceuticals to Japan as the Japanese population continues to age, leading to demand growth for medication. Canadian pharmaceutical exports to the world already totalled $15.5 billion in 2024.
  • Unsurprisingly, the Japanese auto industry makes up a large share of Canadian imports from Japan. Automobile and light-duty motor vehicle manufacturing, other motor vehicle parts manufacturing, and tire manufacturing accounted for 44.5 per cent of overall imports in 2024.
  • Given the importance of Japan’s auto industry, Japan could help shore up auto imports for Canada, and Japanese companies could invest more in their Canadian operations in order to serve Canadian customers, if tariffs impact the North American integrated auto sector.
  • Overall, trade between Canada and Japan is relatively small, but there is room to grow. Japan is a net importer of energy and mining products; a need Canada can help fulfill. Meanwhile, Canada’s auto sector is facing challenges, which could provide an opportunity for Japanese trade and investment to help support Canada’s auto industry. Overall opportunities for expansion remain somewhat constrained by Japan’s aging population and slow economic growth.

Chart 1

Top 10 Canadian Exports to Japan, 2024

($CAD, millions)

Bar chart showing Canada's top 10 exports to Japan. They are: coal, natural gas, pork, copper, iron, wood, wheat, pharmaceuticals, rapeseed, and soybeans.

Sources: Trade Data Online, The Conference Board of Canada.

Chart 2

Top 10 Japanese Imports from the World, 2024

($CAD, billions)

Bar chart showing Japan's top 10 imports from the world. They are: oil, machinery and mechanical appliances, natural gas, coal, motor vehicles and parts or transportation equipment, smartphones, electronic integrated circuits, pharmaceuticals, copper, and iron.

Notes: Bars highlighted in red indicate export opportunities for Canada.
Sources: U.N. Comtrade, The Conference Board of Canada.

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