Canada Moves to Cool Frac Sand Costs, for Now

Time-limited remission covers US silica and quartz sand, easing near-term cost pressure for Canadian importers of fracturing materials

18 Jul 2025

Canada has granted temporary tariff relief on US-origin silica and quartz sand used in hydraulic fracturing, reducing near-term cost uncertainty for Canadian oil and gas companies that rely heavily on imported proppant.

A federal order referenced in a notice published in the Canada Gazette provides remission of retaliatory surtaxes on certain US goods, including silica and quartz sand. According to public reporting, the relief applies to sand imported before October 16 2025, making it a time-limited measure rather than a permanent change to trade policy.

US-origin sand remains a significant part of Western Canada’s completion supply chain, reflecting established technical specifications and long-standing logistics networks. Industry participants had warned that the surtaxes could add substantial costs to drilling and completion programmes, particularly for high-intensity fracturing operations that consume large volumes of proppant.

For operators and oilfield service companies, the remission reduces short-term pricing volatility on a key input at a time when activity levels and logistics schedules remain sensitive to disruption. Even temporary relief is expected to help with budgeting and planning for wells scheduled through the second half of the year.

The measure does not apply automatically. Importers must meet eligibility criteria and retain appropriate customs documentation to support remission claims. Companies are therefore expected to increase coordination between procurement teams, customs brokers and logistics providers to ensure compliance with the administrative requirements.

While the order eases a specific cost pressure, it does not address other constraints affecting sand supply, including rail capacity, weather-related disruptions and shifts in drilling activity. Nor does it resolve broader uncertainty around future trade measures once the remission period expires.

Still, the limited window of relief is likely to influence how Canadian buyers manage inventories and structure short-term supply agreements, as companies seek to take advantage of lower landed costs before the deadline.