Key facts
- Canada is the US's largest international supplier of petroleum, accounting for half of foreign imports.
US and Canada Maintain Energy Trade Despite Tariff War
IN SHORT
Despite imposing tariffs on a wide range of goods, the United States and Canada have kept oil, gas, and electricity exempt from their trade dispute. Both nations are highly dependent on each other for energy supplies, making a complete severing of ties impractical and costly. Canada is the largest supplier of petroleum to the U.S., while the U.S. is Canada's primary energy market.
Key Numbers
50percent tariffs on Canadian imports imposed by the US in July
84percent of Canada's oil sent to US consumers in 2024
76percent of Canada's electricity sent to US consumers in 2024
Who's Involved
Donald Trump
United States President who has not touched energy in tariff war
Mark Carney
Canadian Prime Minister forging energy deals with Turkey
Canada
largest international supplier of petroleum to the United States
United States
heavily dependent on Canadian hydro and fossil fuels
↳ Why This Matters
The integrated energy systems between the US and Canada are too complex and costly to untangle, ensuring continued energy trade despite political disputes.