Lower crude oil prices reduced U.S.-Canada energy trade value in 2025
Note: Prices are adjusted for inflation.
The 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. Energy trade value is the total value of energy imports and exports between two countries and is driven by commodity volumes and prices. Most of the U.S.-Canada trade value is U.S. energy imports from Canada—$111 billion in 2025—rather than from U.S. energy exports to Canada, which totaled $26 billion last year. Crude oil accounts for the largest component of U.S.-Canada energy trade, making up 69% of the total value traded in 2025.
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.
Despite the imposition of the 10% tariff last year, the United States remained the largest export destination for Canada’s crude oil given the existing pipeline infrastructure connecting the two markets. Relatively complex U.S. petroleum refineries tend to prefer heavy crude oils, such as those produced in Canada.
Crude oil. Brent crude oil prices averaged $69 per barrel (b) in 2025, $11/b lower than in 2024. Lower crude oil prices in addition to lower trade volumes resulted in the value of crude oil trade between the United States and Canada averaging $94.7 billion, 16% less than in 2024.
Canada is a key source of U.S. crude oil imports, and it remained the primary source of U.S. crude oil imports in 2025. U.S. crude oil imports from Canada in 2025 averaged 3.9 million barrels per day (b/d), 4% less than in 2024, partly due to increased utilization in Canada of the Trans Mountain Expansion (TMX) pipeline, which brings Canadian crude oil to the Pacific Coast for export to foreign markets. Canadian companies can export crude oil to markets in the U.S. West Coast region and, increasingly, to those in Asia.
U.S. crude oil exports to Canada are small by comparison, averaging 383,000 b/d in 2025, 2% less than in 2024. U.S. crude oil exports to Canada are typically low-density and low-sulfur crude oil grades shipped via pipeline to eastern Canada.
Petroleum products. Petroleum products trade between the United States and Canada increased by about 2% by volume in 2025 but decreased by about 4% by value, driven by lower fuel prices. Crude oil prices make up the largest component of gasoline and diesel fuel prices.
In 2025, the United States imported 583,000 b/d of petroleum products from Canada, a 2% decrease. Lower fuel prices and lower import volumes resulted in $16 billion of petroleum imports from Canada in 2025, 15% lower than in 2024. Meanwhile, U.S. petroleum product exports to Canada in 2025 averaged 504,000 b/d, 6% higher than in 2024. Similarly, the value of U.S. petroleum product exports to Canada in 2025 was 12% less than in 2024 at $13.4 billion.
Principal contributor: Sean Hill
Tags: international, exports/imports, Canada, crude oil