The U.S.-Canada natural gas and electricity trade value rose in 2025

In-brief analysis

Although the total value of energy trade between the United States and Canada fell by 11% in 2025 to an estimated $137 billion, according to data from the U.S. Census Bureau, the trade value of natural gas and electricity between the two countries increased slightly primarily because of increased natural gas prices and trade volume.

As of March 6, 2025, Canada's energy exports to the United States are subject to a 10% tariff, although some crude oil volumes are potentially exempt from tariffs if they qualify for the United States-Mexico-Canada Agreement preference. More recent tariff actions announced by the White House exempt energy trade.

Natural gas. The value of natural gas trade increased, following a rebound in natural gas prices in 2025, but still made up a relatively small share of the value of energy traded, at 8% of the total. The volume of U.S. natural gas imports from Canada averaged 8.6 billion cubic feet per day (Bcf/d) in 2025, or 1% higher than in 2024. The value of these imports was 52% higher in 2025 than in 2024. The volume of U.S. natural gas exports to Canada increased by 4% in 2025 to an average of 2.8 Bcf/d, while the value increased by 77%, totaling $2.6 billion in 2025.

Most natural gas traded between the United States and Canada is sent by pipeline. Most U.S. natural gas imports from Canada arrive at the western and central portions of the border, and U.S. natural gas exports are more often sent from northeastern states into Ontario.

Electricity. Electricity trade between the two countries is relatively small compared to trade in other energy sources. The value of electricity trade between the United States and Canada totaled $3.2 billion in 2025, 67% of which was electricity imported from Canada into the United States.

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

Principal contributor: Sean Hill

Tags: Canada, natural gas, electricity, exports/imports