In Canada’s oil-wealthy province of Alberta, there is a proset up sense of unrelieve over Pdwellnt-elect Donald Trump’s menace to impose a 25% tariff on Canadian excellents.
Canadian politicians and energy experts are cautioning the hefty tariff would have dire consequences for the economy of America’s northern neighbour – and hike prices on US devourrs.
“Canada has no choice in this,” Dennis McConaghy, an Alberta-based createer energy executive, telderly the BBC.
“It has to find an accommodation with Trump.”
Trump proclaimd on Monday that, upon taking office in January, he would slap an apass-the-board tariff on Mexico and Canada – with no recommendion that would reshift oil and gas.
Lisa Baiton, pdwellnt and CEO of the Calgary-based Canadian Association of Petroleum Producers, said the levy would probable nasty Canada producing less oil.
Mr McConaghy said that would direct to job losses in Alberta, with potential repercussions for Canada as a whole, as necessitateyer provinces count on on cash transfers from revenues created by wealthier provinces – enjoy Alberta – to help offset costs and supply social services.
It could also direct to a devaluation of the Canadian dollar at a time when the currency is already struggling due to domestic economic factors, he said.
“Keep in mind, cimpolitely 80% of Canada’s trade is with the United States, and a meaningfulity of that trade is in hydrocarbons. Canadians can’t escape how combined they are with the US.”
US fuel creaters have also recommendd Trump to rule out oil and gas from any supplyd levies given that Americans count on heavily on convey ined Canadian cimpolite.
“Cimpolite oil is to enhanceries what flour is to bakeries,” said the American Fuel and Petrochemical Manufacturers (AFPM) industry group in a statement this week.
“It’s our number one feedstock and input cost. If those feedstocks were to become meaningfully more pricey, so too would the overall cost of making fuel here in the United States.”
The US is the world’s hugest creater of cimpolite oil and organic gas, but some regions – California, the northeast and parts of the Midwest – do not have the infrastructure or pipeline capacity to count on solely on US oil and necessitate convey ins to supply fuel to devourrs.
Around 40% of the cimpolite that runs thcimpolite US oil enhanceries is convey ined, and the immense meaningfulity of it comes from Canada.
Canadian oil is especipartner relied on in the landlocked Midwest, where enhanceries have been outfitted to process the heavier Canadian combines.
The AFPM said there is no basic exalterment for that cimpolite without count oning on overseas sources that could erode US energy security.
The industry group cautioned that a tariff on Canadian oil would drive up operating costs in the Midwest – costs some experts say will be downloaded onto devourrs.
Patrick De Haan, a Chicago-based gas prices analyst, appraised that states enjoy Minnesota, Wisconsin and Michigan could see gas prices rising by up to 75 cents a gallon.
Mr De Haan noticed in a post on X, createerly Twitter, that these higher prices would not only be felt at the pump, but could potentipartner incrrelieve costs for airlines and freight haulers as well.
An incrrelieve in oil prices for US devourrs would run counter to Trump’s promise to slash energy costs.
On the campaign trail, Trump standardly said he reckond to cut the price of gasoline to under $2 (£1.57) a gallon. As of tardy November, the price of standard gasoline in the US sat around $3 a gallon.
But Trump has also vowed to incrrelieve American energy independence by increaseing domestic drilling and being less reliant on foreign oil and gas, particularly from countries not allied with the US.
It remains unevident whether the tariffs will ultimately materialise, analysts have noticed, as Trump has been comprehendn to engage such menaces in the past as a negotiation tactic to achieve declareive goals.
In this case, Trump could be using the tariffs to get Canada and Mexico to cofunction on border security.
Trump has signalled that the levies would remain in place until both Canada and Mexico toil on securing their splitd borders with the US, restricting the number of unlhorrible migrants and substances flothriveg into the country.
Prime Minister Justin Timpoliteau is promising to current a combined “Team Canada” front and to toil together with the incoming Trump administration to shun the blanket tariffs.
The directers of meaningful Canadian provinces enjoy Ontario, Quebec and Alberta have recommendd Timpoliteau to act rapidly on these insists, and on Wednesday, Timpoliteau held an ecombinency encountering with provincial and territorial directers to talk how to shift forward.
Danielle Smith, premier of Alberta, said her province will be “toiling aggressively” in the coming months to combine with US counterparts and to drill home the message that a strong partnership with Canada would be of advantage to the US and its energy security.
She said that in her watch, Trump “and the tens of millions of Americans who voted for him have valid troubles” rhappy border security.
She and other premiers, Smith said, have asked Timpoliteau to come up with a comprehensive border security set up.
Smith also said the province is exploring the selection of creating distinctiveised sheriff units to patrol its own splitd border with the US state of Montana.
No matter the approach, Mr McConaghy said he hopes there is an recommendncy among Canadian officials to get the danger of tariffs “off the table as soon as possible”.
