US imports record volumes of Canadian oil

US imports of crude oil from Canada hit a record high of 4.42mn barrels per day (bpd) in the week up to January 3, data from the US Energy Information Administration (EIA) showed. While oil imports from Canada subsequently dropped slightly to 4.0mn bpd in the week up to January 10, the first figure was the highest since records began in June 2010.
That week, imports from Canada had also risen by 689,000 bpd, representing the largest week-on-week increase since the week up to July 12, 2024. This also came as total US oil imports by 498,000 bpd to 6.43mn bpd, the lowest level in a month, according to the EIA.
This increase in Canadian volumes came amid threats by US president-elect Donald Trump to impose a 25% tariff on imports from Canada, as well as imports from Mexico, immediately upon taking office. Canada is by far the largest exporter of oil to the US.

As of October 2024, Mexico was the second largest exporter of oil to the US, though volumes from Mexico were a fraction of those from Canada, coming in at 383,000 bpd in October. For the first 10 months of 2024, oil imports from Canada averaged 4.1mn bpd, while those from Mexico averaged 467,000 bpd, EIA data showed.
Many US refiners are geared to process heavier crude grades such as those coming from Canada. Indeed, the start-up of the Trans Mountain pipeline expansion from Alberta to the British Columbia coast in May 2024 opened up a new route for refiners on the US West Coast to receive Canadian oil. The EIA said in October that early data indicated that the US West Coast had accounted for just over half of all maritime crude exports out of Western Canada between June and September.
Now, tensions are building as clarity is awaited on potential US tariffs – and possible retaliatory measures. On January 15, Reuters cited sources familiar with the matter as saying Canada could impose countermeasures on up to CAD150bn ($105bn) worth of US imports if Trump decides to proceed with his planned tariffs. However, Alberta Premier Danielle Smith has voiced her opposition to the idea of curbing Canadian oil exports – one option that Canadian federal officials have been reported to be weighing.