⚡️ Interlocked

On Monday, we’ll be hosting a data-based panel exploring the North American trade alliance as part of the North Capital Forum in Mexico City, hosted by our friends at the US–Mexico Foundation. We hope to see you there!

Canadian and Mexican policymakers and businesses may have needed a strong drink a few months back when their countries were hit by massive tariffs by the United States. But it’s worth recalling that not every sector was equally impacted.

Take energy. Canada is actually the largest energy supplier of US imports (and the second-largest energy importer from the US), serving for example as the source of 60% of all US oil imports.

With this in mind, and knowing how sensitive Americans are about prices at the gas pump, the Trump administration kept Canadian oil and energy tariffs at 10%, rather than the 25% slapped on everything else from Canada (and Mexico).

But don’t think North American energy integration is exclusive to the US-Canadian border.

So if Canada anchors 60%, where does Mexico’s $78B actually change the calculus?

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