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Canada Exempts U.S. Fracking Sand From Retaliatory Tariffs

A federal order spares oil and gas drillers roughly C$275 million in costs by securing continued access to specialized silica and quartz sand

Overview

  • The Canada Gazette order published July 17 exempts silica and quartz sand imports used in hydraulic fracturing from the counter-tariffs Canada imposed in response to President Donald Trump’s duties.
  • Canadian drillers consume about eight to nine million tonnes of silica sand annually, with roughly six million tonnes sourced from Wisconsin to meet strict fracking specifications.
  • Industry group Enserva estimates that the tariff relief will save oil and gas companies approximately C$275 million each year.
  • Ottawa granted remission for sand imports arriving before October 16 under provisions that allow exemptions when alternative supply chains are limited.
  • Stakeholders are awaiting word on whether similar tariff relief will be extended to other critical drilling inputs such as coil tubing and drill bits.