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How electricity differs from most traded goods in US-Canada conflict

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Kaitlyn Serrao

As the trade war between the U.S. and Canada escalates, there are concerns Canada’s energy exports to states like New York, Michigan and Minnesota could become tools in the conflict.


Fengqi You

Roxanne E. and Michael J. Zak Professor in Energy Systems Engineering

Fengqi Youprofessor of energy systems engineering at Cornell University, studies sustainable energy systems. He is currently researching the impact of multi-country hydroelectric power systems and comments on how this could play into trade negotiations.

You says: 

“Electricity is different from most traded goods because it must be generated and delivered through a shared grid in real time. Tariffs, export surcharges, or threats to curtail cross-border flows can therefore affect more than trade: they can change which power plants run, raise system costs and emissions, and reduce the flexibility available during extreme weather or other periods of stress.

“The United States and Canada have built a deeply interconnected power system over decades, and cross-border flows can provide an important reliability buffer during critical hours. 

“Policymakers on both sides should evaluate electricity trade measures not only as commercial policy, but also as energy security and grid reliability policy."

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