The US and Canada share an interconnected electricity system where cross-border trade lowers costs, supports low-carbon generation and balances supply and demand during stress.
US tariff dispute war on Canada risks costlier or curtailed electricity imports from Canada, while system-wide consequences remain unclear.
Research newly published in the journal Nature shows that US tariffs on Canadian electricity reduces imports, raises prices, lowers economic welfare, and increase carbon emissions by replacing hydropower- and nuclear-rich imports with fossil-fuel generation.
Reduced access to Canadian power also shrinks US operating reserves, which provide spare capacity during unexpected shortages, increases reliance on oil-fired plants during summer peaks, and raises the risk of forced power cuts during severe winter disruptions.
Open cross-border electricity trade therefore supports cost efficiency, decarbonization and grid resilience.
More: Techxplore: Tariffs on Canadian power could raise costs, emissions and grid risks
Last Updated on 18 minutes ago