The economies of Canada and the United States are highly connected. But how do those connections work? And why are they there? Our Connected Economy series will explain just that.
One large way that the two countries are connected is by electricity. The electricity industry is exactly what it sounds like. It is the business of providing electric power to homes and businesses. Every time you flick on a light or turn on a gadget, you use electricity.
We generate electricity using a variety of methods. These include natural gas, , , solar, and wind. Canada makes a lot of its own electricity. Quebec’s hydroelectric industry is one of the largest in North America. Ontario and British Columbia are also big power producers. However, these provinces often make more energy than Canadians can use. This is called an energy .
Much of this surplus is sold to our neighbours in the United States. Canada has been selling electricity to parts of the US for over a century. And it sells quite a lot of it, too. Every year, the US buys enough Canadian electricity to power millions of homes.
But Canada also buys some electricity from the US. This might sound confusing. But this system is designed to work in this way. This is because each country’s power needs and supplies change.
Cities don’t always need the same amount of energy. In winter, Canadians need more power to heat homes. But those needs go down in spring and fall. And power plants based on nature, like water or wind, change, too. Some days, they make lots of energy. Some days they make less.
Canada and the US share electricity to solve this problem. This way, it is always possible to find the energy people need, when they need it.
Technically, the energy is not “shared” but sold. But thanks to good relations, Canadian and US electrical companies do not raise their prices for each other. They sell fairly.
However, US president Donald Trump is changing this relationship. Trump wants the US to make all the things that it needs by itself and without help from Canada. He wants the US to buy fewer Canadian things. This will hurt Canadian businesses. Trump complains the most about Canadian car factories, lumber, dairy, and oil. He has not said much about Canadian electricity. But many Canadian leaders are using electricity to fight back.
This is true of Ontario Doug Ford. He says he will make Ontario electricity cost more for Americans. He has even said he might cut it off completely. This would hurt the US. So far Quebec premier François Legault has not made the same threats. But he is under pressure to follow Ford’s lead. Especially since Ford appears to be catching US attention.
On March 13, Ford and other Canadian leaders met with US leaders in Washington. They talked about solving the issues between the countries. “This was the best meeting I’ve ever had coming down here,” Ford said after the meeting. “We want the best outcome for both countries. I’m feeling positive.”
By John Crossingham
Updated March 14, 2025, 5:00 P.M. (ET)
