This Graph of the Week shows the proportion of businesses by size involved in goods trade with other countries, including a breakdown just for the United States. Across all business sizes, few firms trade to “all destinations” that also don’t trade with the US, indicating low diversification and vulnerability to the US market. Imports are more geographically diversified, with more firms importing, and more importing from “all countries” than from the United States specifically. A higher proportion of firms are vulnerable to import disruption, which likely informed Canada’s cautious approach to retaliation against US tariffs on Canadian goods. For more information, please refer to the latest Trade Crisis Working Group Communiqué.
