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 U.S. a month later, do not include oil and natural gas. Electricity and some petroleum products were also left out, although they remain subject to a 10% tariff imposed in 2025.
That’s because the two countries’ energy systems and markets are so intertwined that tariffs would devastate both economies. Canada is the biggest supplier of foreign petroleum to the United States, supplying half of all its petroleum imports. It is also the only direct foreign supplier of electricity to the U.S., with 34 major transmission points moving electricity from Canada south across the border.
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