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The value of energy trade between the United States and Canada declined 11 per cent in 2025 to an estimated USD 137 billion, primarily due to lower crude oil prices and reduced trade volumes, according to the latest analysis report by the US Energy Information Administration (EIA).
The report said energy imports from Canada continued to dominate bilateral energy trade. Of the total trade value, U.S. energy imports from Canada stood at USD 111 billion, while U.S. energy exports to Canada totalled USD 26 billion in 2025. It stated, "Crude oil accounts for the largest component of U.S.-Canada energy trade, making up 69 per cent of the total value traded in 2025." The decline came as Brent crude oil prices averaged USD 69 per barrel in 2025, down USD 11 per barrel from 2024. Combined with lower trade volumes, this reduced the value of crude oil trade between the two countries to USD 94.7 billion, representing a 16 per cent decline from the previous year. Despite the imposition of a 10 per cent tariff on Canada's energy exports to the United States from March 6, 2025, the report said the United States remained Canada's largest export destination for crude oil due to the extensive pipeline infrastructure connecting the two countries. It added that some crude oil shipments qualified for exemptions under the United States-Mexico-Canada Agreement (USMCA), while subsequent tariff measures announced by the White House exempted energy trade. The report noted that Canada continued to be the primary source of U.S. crude oil imports in 2025. U.S. crude oil imports from Canada averaged 3.9 million barrels per day, down 4 per cent from 2024. The decline was partly attributed to increased use of Canada's Trans Mountain Expansion (TMX) pipeline, which enables Canadian crude to reach the Pacific Coast for exports to foreign markets, including Asia. In comparison, U.S. crude oil exports to Canada remained relatively small, averaging 383,000 barrels per day in 2025, a 2 per cent decline from the previous year. These exports mainly comprised low-density and low-sulfur crude grades transported by pipeline to eastern Canada. The report highlighted that the trade in petroleum products presented a mixed picture. While bilateral petroleum product trade volumes increased by about 2 per cent in 2025, the overall value of trade declined by around 4 per cent because of lower fuel prices. EIA also noted that the United States imported 583,000 barrels per day of petroleum products from Canada in 2025, a 2 per cent decline in volume. Lower prices and reduced imports brought the value of petroleum product imports down to USD 16 billion, 15 per cent lower than in 2024. Meanwhile, U.S. petroleum product exports to Canada averaged 504,000 barrels per day, up 6 per cent from the previous year. However, the value of these exports declined 12 per cent to USD 13.4 billion, reflecting the impact of lower fuel prices. (ANI)
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