US-Canada Trade War Escalates; Houston Ties Largely Protected

Houston’s trade with Canada remains dominated by energy products and largely insulated from tariffs and threats, though some components of their $12 billion relationship could still feel spillover effects. A Trump-led trade war is viewed by climate and trade experts as a potential catalyst for Canada to accelerate its energy transition, diversify exports, and bolster economic sovereignty, albeit with short-term risks like investment uncertainty. The discussions emphasize that climate and energy policy is inseparable from competitiveness policy, urging rapid development of clean energy supply chains to attract investment. LNG Canada’s ramp-up—driven by disruptions to other gas supplies—has already begun exporting to Asia and appears close to its full capacity, highlighting Canada’s emergent role in global LNG markets. Canada’s strategy, including LNG expansion and cross-border trade realignment, is framed as a long-term opportunity to leverage clean energy and diversified markets in the face of US tensions.