Oil Bind: Tariffs Miss the Biggest Lever in US-Canada Trade Clash
The weekend breakdown in US-Canada talks led Washington to impose a 50% tariff on a wide range of Canadian goods, but crude oil is exempted, underscoring how tightly the two economies are tied: Canada supplied about 63% of US crude last year and the US buys roughly 90% of Canadian exports. Imposing tariffs on energy would raise costs for US refiners and could force price changes, while Canada would struggle to find alternative buyers beyond the US, given existing pipelines and connections. The oil relationship is powerful but risky to weaponize, making crude a costly lever in the dispute for both sides.