Edmonton, Alberta – Canadian leaders and energy experts are expressing concerns over the potential impact of President-elect Donald Trump’s proposed 25% tariff on Canadian goods. The looming threat of such a hefty tariff has sparked unease in Alberta, a province heavily reliant on the oil industry.
Experts warn that if the tariffs are imposed, it could lead to dire consequences for Canada’s economy and result in higher prices for consumers in the United States. Lisa Baiton, president and CEO of the Calgary-based Canadian Association of Petroleum Producers, highlighted that the tariff could lead to a reduction in Canadian oil production.
The interdependence between the two countries, particularly in the energy sector, is significant, with approximately 80% of Canada’s trade being with the United States. Canadian oil is a crucial import for the US, with around 40% of the crude oil used in American refineries coming from Canada.
The potential tariff on Canadian oil has raised concerns about increased operating costs in regions like the Midwest, where refineries are reliant on Canadian oil for processing. This could ultimately result in higher gas prices for consumers in states like Minnesota, Wisconsin, and Michigan.
Prime Minister Justin Trudeau is working to present a unified front with “Team Canada” to address the concerns raised by the incoming Trump administration. Provincial leaders like Danielle Smith, Premier of Alberta, are advocating for a strong partnership with the US to promote energy security and economic benefits for both countries.
Regardless of the uncertainty surrounding the imposition of tariffs, Canadian officials are urged to act swiftly to address the potential risks and uncertainties associated with the proposed measures. The urgency to find solutions and maintain positive relations with the US remains a top priority for Canadian leaders and experts in the energy sector.