Trump’s tariff could short-circuit US-Canada energy ties

By Peter Behr, Carlos Anchondo | 01/31/2025 06:33 AM EST

Hydropower and pipelines cross the U.S.-Canada border. They’re critical to keeping the lights on and energy costs from going up.

President Donald Trump and Canadian Prime Minister Justin Trudeau talk.

Canadian Prime Minister Justin Trudeau (right) has promised a robust response to President Donald Trump's plan to place a 25 percent tariff on goods from Canada starting Feb. 1. Frank Augstein/AP

When the Hudson River warms up in the coming weeks, crews and barges will continue to stretch a high-voltage power line under the river to connect New York City with the vast hydroelectric dams of Canada’s Quebec Province.

Officials anticipate that nearly 20 percent of the indispensable electricity consumed in New York City every day will come from the $6 billion Champlain-Hudson transmission line.

The power line is a symbol of what experts call a vital energy partnership between the United States and Canada. As soon as tomorrow, President Donald Trump is expected to impose a 25 percent tariff on goods crossing the northern border — a punishing border tax that would destabilize a trade relationship that runs deep when it comes to energy.

Advertisement

Oil and gas constitute the highest value Canadian energy product crossing the border. Canada’s crude oil exports to the U.S. amounted to 24 percent of U.S. refinery throughput in 2023, an increase from 17 percent in 2013. Canadian natural gas shipments supply about 6 percent of U.S. demand, the Energy Information Administration reports.

GET FULL ACCESS