From The Conversation · Stefano Tijerina · · 1m 40s
US and Canada Energy Markets Deeply Linked
US and Canada share 84% of oil and 76% of electricity exports, making their energy markets one of the world's most intertwined.
In brief
US and Canada share 84% of oil and 76% of electricity exports, making their energy markets one of the world's most intertwined. Canada supplies 84% of its oil and 76% of electricity to the US, creating a deeply integrated energy market that avoids tariffs. Originally reported by The Conversation.
Energy Market Links
The US and Canadian economies are closely linked, especially around energy.
Tariff Exemptions
The 50% tariffs imposed by President Donald Trump’s administration on imports from Canada in July 2026, and the reciprocal 50% tariffs imposed by Prime Minister Mark Carney’s administration on imports to Canada from the US…
Energy Exports
Canada supplies half of all US petroleum imports and is the only direct foreign supplier of electricity to the US, with 34 major transmission points.
Energy Market Dependence
In 2024, 84% of Canadian oil production and 76% of Canadian electricity production were exported to the US.
Historical Integration
Since the second half of the 19th century, energy generated on both sides of the border has connected the two nations.
WWII Cooperation
During the early stages of World War II, Canada and the US started integrating their energy systems for joint security efforts.
Post-War Integration
By 1989, the two countries had signed a full-scale free trade agreement that removed tariffs for goods crossing the border in either direction.
Current Energy System
Today, four major US electrical grids depend on imported power from Canada: the six New England states, New York, 15 Midwest and South states, and California.
Local Impact
Maine gets close to 30% of its electricity from Canada, with grids owned by foreign interests including ENMAX and Iberdrola.
The bottom line
Canada supplies 84% of its oil and 76% of electricity to the US, creating a deeply integrated energy market that avoids tariffs.
