For decades, the U.S. and Canada have worked together to keep energy affordable for families. But that stability is now at risk, as the Trump Administration’s 10% tariff on Canadian energy is expected to drive up costs for households across the country.
Families trying to get their kids to school, workers commuting to their jobs, and small businesses keeping the lights on will all feel the strain.
“The tariffs will cause economic pain in the U.S. and Canada, calling the situation a ‘lose, lose proposition for both countries,’” said Canadian Energy Minister Jonathan Wilkinson.
The impact will be particularly severe in the Midwest, where many refiners rely on Canadian crude oil. The U.S. imports more than 60% of its crude from Canada, and experts warn that tariffs could significantly increase costs at the pump.
Canada has signaled that it will respond with its own trade measures, including tariffs on American products such as coffee, wheat, footwear, and home appliances.
U.S. industries that depend on Canadian markets—especially agriculture and manufacturing—may see declining demand and higher costs, putting additional pressure on businesses already navigating economic uncertainty.