Canada’s railway strike could have major impacts on various sectors and companies in the U.S. that rely on goods and commodities from the second-largest company in the world.
Canada uses railways extensively to export grain, automobiles, potash, coal and other goods that are sold by companies — about $277 billion worth annually.
Thursday’s stoppage by these two Canadian railways could prove to be a major shock to U.S. companies and sectors because of the amount of goods and commodities they carry in North America.
Canadian National Railway Company operates 20,000 miles of railroad that spans the entire width of Canada and follows the Mississippi River all the way to the Gulf of Mexico.
The Canadian Pacific Kansas City also runs a 20,000-mile network that covers Canada from east to west but also travels down through the U.S. and into Mexico.
Read Also: Transatlantic Container Shipping Volumes Rise As Possible Strike At U.S. Ports Hovers
Here are some sectors that stand to be hurt by the rail stoppage:
Automobile
The U.S. imported and exported transportation equipment worth about $73 billion respectively in 2023 from Canada, according to the International Trade Administration. Canadian National’s website said it carries over 2 million finished vehicles a yearon an annual basis and services 12 North American vehicle assembly plants.
Canadian Pacific Kansas City caters to about 90% of automotive assembly plants in Mexico, it said on its website.
Price Action: Major automobile manufacturers had mixed performances into Thursday’s mid-afternoon trading.
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