Canada’s energy minister has warned the U.S. that Canada could reduce crude oil exports in response to recent import tariffs imposed by the Trump administration. Jonathan Wilkinson also mentioned that export tariffs could be another option for retaliation.
Wilkinson told Reuters, “Non-tariff retaliation could include restricting supply or adding our own export duties on products, such as energy and minerals. It could also go beyond that.” He further added that these actions could make the U.S. even more dependent on China. “Everything is on the table,” he concluded.
Earlier this month, President Donald Trump imposed a 25% tariff on most Canadian imports. Canada retaliated with tariffs on over $100 billion of U.S. imports. Energy, a key export, has been central to Canada’s response, with the possibility of cutting off oil supplies to the U.S. However, Alberta, Canada’s largest crude oil producer, has indicated it does not support such a move.
Export tariffs have become a less conventional retaliation method. Typically, tariffs are used to protect local industries by limiting imports. In this case, export tariffs seem contradictory. Nevertheless, Ontario’s Premier Doug Ford has threatened to cut electricity exports to the U.S. states, or even stop them entirely. “If they [the U.S.] want to try to annihilate Ontario, I will do everything, including cut off their energy with a smile on my face,” Ford said.
U.S. Energy Secretary Chris Wright, speaking at CERAWeek, suggested that the U.S. and Canada could soon reach an agreement to avoid tariffs on energy products. “We can get to no tariffs or very low tariffs, but it must be reciprocal,” Wright said. The U.S. has also paused tariffs on Canadian and Mexican goods that comply with the United States-Mexico-Canada Agreement (USMCA).
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