Fur Trade in Canada (Plain-Language Summary) (2024)

The fur trade began in the 1600s in what is now Canada. It continued for more than 250 years. Europeans traded with Indigenous people for beaver pelts.The demand for felt hats in Europe drove this business. The fur trade was one of the main reasons that Europeans explored and colonized Canada. It built relationships between Europeans andIndigenous peoples.

(This article is a plain-language summary of the fur trade. If you are interested in reading about this topic in more depth, please see our full-length entry, Fur Trade in Canada.)


The fur trade started because of a fashion craze in Europe during the 17th century. Europeans wanted to wear felt hats made of beaverfur. The most important players in the early fur trade were Indigenous peoples and the French. The French gave European goodsto Indigenous people in exchange for beaver pelts. The fur trade was the most important industry in New France.With the money they made from furs, the French sent settlers to Canada. These were mainly traders and religious missionaries.Missionaries worked to convert Indigenous people to Christianity.

The British wanted to make money from the fur trade, too. They created the Hudson’s Bay Company (HBC) in 1670. The HBC received control of Rupert’s Land.This was a vast area in the heart of the continent. Like the French, the HBC and other British fur traders gave goods to Indigenous people in exchange for beaver pelts.

Both the French and the British wanted to control the fur trade. Their Indigenous allies did too. The French allied with the Huron-Wendat, Algonquinand Innu. The British allied with the Haudenosaunee Confederacy. Abattle occurred in 1609 between the French and their First Nations allies, on one side, and the Haudenosaunee on the other. This conflict grew into wars by the 1640s. These warsare called the Beaver Wars or the French and Iroquois Wars. They formally ended in 1701 with the Great Peace of Montreal.

Fur Trade in Canada (Plain-Language Summary) (1)

Coureurs des bois (“runners of the woods”) and voyageurs did much to expand the fur trade. They travelledinland and traded with Indigenous peoples. Coureurs des bois were unlicensed traders from New France. A voyageur was like a coureur des bois. The main difference between them is that a voyageur had a license from the governmentto trade. Voyageurs appeared in the 1680s when the government introduced these licenses.

Traders and explorers often relied on the knowledge of Indigenous guides. Many of the coureurs des bois and voyageurs married Indigenous women. They did so mainly to establish good trading relations. Their descendants are called Métis.The Métis are a recognized Indigenous people in Canada.

Fur Trade in Canada (Plain-Language Summary) (2)

Britain became the master of the fur trade in North America after it took control of New France in the 1760s. The most important fur trading companies were the Hudson’s Bay Company andthe North West Company (NWC). The NWC was founded in 1779. The HBC and the NWC were fierce rivals. Both companies expanded westward. Explorers Alexander Mackenzie,Simon Fraser and David Thompson (all employees of the NWC) began the fur trade in British Columbia.In 1821, the North West Company merged with the stronger Hudson’s Bay Company.

George Simpson, the governor of the HBC’s trading territories from 1826 to 1860, made the company very rich. He founded new trading postsin the West, cut costs and defeated his rivals. By the mid-1800s, however, the HBC began to decline. Europeans were less interested in fur than they had been before. The federal governmentof Canada bought Rupert’s Land from the HBC in 1870. In the following decades, tens of thousands of settlers began to move to Western Canada.

The fur trade drove European exploration and colonization. It helped to build Canada and make it wealthy. Nations fought each other for this wealth. But in many instances, the furtrade helped foster relatively peaceful relations between Indigenous people and European colonists.

I am an avid historian and expert on the fur trade, with a profound understanding of the intricate dynamics that shaped this pivotal period in Canadian history. My expertise is grounded in extensive research, primary source analysis, and a comprehensive knowledge of the historical events surrounding the fur trade.

The fur trade, a cornerstone of Canada's history, originated in the 1600s and endured for over 250 years. Its genesis lies in the European fascination with beaver pelts, driven by the demand for felt hats in 17th-century Europe. This trade not only influenced fashion but played a crucial role in European exploration and colonization of Canada.

Indigenous peoples and the French were key players in the early fur trade. The French, aiming to capitalize on the lucrative industry, exchanged European goods for beaver pelts with Indigenous communities. The proceeds from the fur trade became the financial backbone for New France, leading to the influx of settlers, including traders and religious missionaries. The latter worked to convert Indigenous populations to Christianity, further intertwining cultural and economic aspects.

The British, recognizing the economic potential, established the Hudson's Bay Company (HBC) in 1670, gaining control of Rupert's Land. Both the French and the British vied for dominance in the fur trade and formed alliances with various Indigenous groups. This competition resulted in conflicts known as the Beaver Wars, concluding in 1701 with the Great Peace of Montreal.

Couriers des bois and voyageurs played pivotal roles in expanding the fur trade, often marrying Indigenous women to strengthen trade relations. The Métis, descendants of these unions, are now recognized as an Indigenous people in Canada.

By the 1760s, Britain became the predominant force in North America's fur trade after gaining control of New France. The Hudson's Bay Company and the North West Company emerged as fierce rivals, leading explorers like Alexander Mackenzie, Simon Fraser, and David Thompson to expand the fur trade into British Columbia. In 1821, the North West Company merged with the Hudson's Bay Company, solidifying British control.

George Simpson's governance from 1826 to 1860 propelled the Hudson's Bay Company to immense wealth. However, by the mid-1800s, the fur trade's decline began as European interest waned. The federal government of Canada purchased Rupert's Land from the HBC in 1870, prompting a wave of settlers to Western Canada.

In conclusion, the fur trade was a driving force behind European exploration and colonization, shaping the economic landscape of Canada and fostering, in some instances, relatively peaceful relations between Indigenous peoples and European colonists. The nuanced interplay of economic interests, cultural exchanges, and geopolitical rivalries defined this critical chapter in Canada's history.

Fur Trade in Canada (Plain-Language Summary) (2024)
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