Business · Trade · 5 hrs ago
US and Canada Keep Oil and Gas Out of Their Tariff Fight
The United States and Canada have kept energy out of their tariff fight, despite imposing tariffs on many other goods.
The tariffs announced in July exempted oil, gas, electricity and some petroleum products.
Canada supplies half of US foreign petroleum imports, and the two countries also share electricity links, including more than 30 major transmission points.
The reliance goes both ways: 84 percent of Canada’s oil and 76 percent of its electricity went to US consumers in 2024.
More US imports of Venezuelan crude are adding pressure on Canadian oil producers, while Canada seeks other buyers.
Canada is pursuing energy deals with Turkey, including plans to increase liquefied natural gas exports, but those deals are not expected to replace the US market.
The United States and Canada have kept oil and gas out of their tariff fight, despite imposing tariffs on other goods.
The countries rely heavily on each other’s energy systems and trade.
Canada supplies half of US foreign petroleum imports, according to the article.
In July, the countries imposed reciprocal tariffs, but exempted oil, gas, electricity and some petroleum products.
Canada is seeking other energy buyers, including Turkey, while US imports of Venezuelan crude are increasing.
- Who
- The United States and Canada, led by President Donald Trump and Prime Minister Mark Carney.
- What
- They have imposed tariffs on other goods but exempted oil, gas, electricity and some petroleum products.
- When
- The reciprocal tariffs were imposed in July of the article’s publication year.
- Where
- The tariff measures affect trade between the United States and Canada.
- Why
- The article says the countries are too dependent on each other’s energy supplies and networks to sever those ties.
This story does not have two clearly opposing sides.
The Trump administration ousted and arrested Venezuelan leader Nicolas Maduro, according to the article.
A transmission line carrying Canadian hydropower directly to New York City was completed.
The United States imposed 50 percent tariffs on a range of Canadian imports, and Canada reciprocated, while exempting energy products.
Carney was in Ankara pursuing energy and defense deals with Turkish President Recep Tayyip Erdogan.
- Canada’s share of US foreign petroleum imports
- Half
- Reciprocal US tariffs
- 50 percent on a wide range of Canadian imports
- Energy products exempted
- Oil, gas, electricity and some petroleum products
- Canadian oil sent to US consumers in 2024
- 84 percent
- Canadian electricity sent to US consumers in 2024
- 76 percent
What people are saying
Without American buyers, there is no real energy market in Canada
The facts, and his own policies, say otherwise