# 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.
- Title: US and Canada Energy Markets Deeply Linked · The Conversation
- Summary: 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…
- Keywords: canada, energy, oil, electricity, natural gas, hydroelectricity, canada-us trade, petroleum products, hydroquebec, canada-us trade war, science, Markets
- Source: The Conversation — https://theconversation.com/why-and-how-us-and-canadian-energy-markets-are-so-deeply-intertwined-292090
- Author: Stefano Tijerina
- Read time: 1 min
- Topics: us, canada, energy, oil, electricity, natural gas, hydroelectricity, canada-us trade, petroleum products, hydroquebec, canada-us trade war, science
## 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.
## Key takeaway

Canada supplies 84% of its oil and 76% of electricity to the US, creating a deeply integrated energy market that avoids tariffs.