How U.S. Tariffs Threaten Canada’s Clean Energy Future

A new Deloitte Canada report warns that sweeping 25% U.S. tariffs on Canadian exports could slash output in Canada’s oil, gas, and mining sectors by 6.8% over the next five years. The economic fallout won’t stop at the border—both countries could see GDP shrink by up to 1.9% as trade tensions escalate.

Despite Canada’s energy sector having a strong year in 2024 due to the Trans Mountain pipeline expansion and increasing exports to Asia, the long-term risks of the U.S. tariffs are concerning. 85% of Canada’s oil production is still linked to the U.S market, meaning that a decrease in demand and tariff pressures poses a risk to the sector along with impacting economic growth.

Provinces such as B.C. that are less reliant on U.S. energy exports due to diversified trade relationships and growing tourism are better equipped to adapt. However, many other regions face the looming threat of the tariffs and demand fluctuations.

Canada is in urgent need of reducing its dependence on fossil fuels as well as international markets. Through strengthening local energy infrastructure and investing in renewables, the nation can position itself to be more self-sufficient.

This economic uncertainty highlights the growing need for energy resilience and local generation. Borrum Energy Solutions’ self-assembled wind turbines let you take control of your own energy supply. Through decentralizing power production and reducing reliance on international markets, we can build a more stable, clean, and affordable energy future—one backyard at a time.