Although the total value of energy trade between the United States and Canada declined by 11% in 2025 to an estimated $137 billion, the trade value of natural gas and electricity between the two countries edged higher, driven primarily by rising natural gas prices and increased trade volumes, according to data from the U.S. Census Bureau. Because petroleum products dominate the U.S.-Canada energy trade balance, the overall decline reflects softer crude oil values even as gas and electricity moved in the opposite direction.

As of March 6, 2025, Canada's energy exports to the United States are subject to a 10% tariff. However, certain crude oil volumes may be exempt if they qualify for United States-Mexico-Canada Agreement (USMCA) preference. More recent tariff actions announced by the White House exempt energy trade, though the shifting policy landscape has introduced uncertainty for pipeline operators, utilities, and commodity traders managing cross-border supply agreements.

Natural Gas

The value of natural gas trade rose in 2025, buoyed by a rebound in natural gas prices, yet still accounted for a relatively modest 8% of total energy trade value.

U.S. natural gas imports from Canada averaged 8.6 billion cubic feet per day (Bcf/d) in 2025, up 1% from 2024. The value of these imports climbed 52% year over year. Meanwhile, the volume of U.S. natural gas exports to Canada grew 4% to an average of 2.8 Bcf/d, while the value surged 77% to a total of $2.6 billion. Despite being the world's largest natural gas producer, the United States continues to rely on Canadian pipeline gas to serve regional demand, particularly in the Pacific Northwest and during winter heating season.

The majority of natural gas traded between the United States and Canada is transported via pipeline. U.S. natural gas imports from Canada predominantly arrive at the western and central sections of the border, while U.S. exports are more commonly shipped from northeastern states into Ontario.

Electricity

Electricity trade between the two nations remains relatively small compared to other energy sources. The total value of electricity trade between the United States and Canada reached $3.2 billion in 2025, with 67% of that amount representing electricity imported from Canada into the United States. The two countries' power grids have been interconnected for decades, allowing utilities to share resources and balance seasonal demand, with Canadian hydropower playing a central role in cross-border flows.

Although the U.S. Northeast has been relying less on electricity imports from Canada in recent years, a new transmission line that commenced operations in January 2026 has the potential to boost U.S. electricity imports from Canada going forward.

Source: EIA