Released January 15, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Leaders from a divided Canadian government are considering a tit-for-tat response to U.S. tariff threats, as the premier of oil-rich Alberta said she's seen no sense of change from the incoming administration.
Donald Trump takes the oath of office Monday for his second, non-consecutive term as U.S. president. After brokering a free-trade deal with top trading partners Canada and Mexico during his first term, Trump has pledged to impose a 25% tariff on goods imported from his North American neighbors, purportedly to control the flow of illegal immigrants and illicit drugs.
For Canada, tariff threats could choke out a financial line to its top trading partner. Nearly $6.3 billion worth of Canadian goods cross the border each day, and the nation accounts for about 60%, or about 4.3 million barrels per day, of crude oil exports to the U.S.
Many of the U.S. refineries are designed to process the heavier type of crude oil found largely in Alberta. But after meeting with Trump during the weekend at his Mar-a-Lago estate in Florida, Alberta Premier Danielle Smith of the United Conservative Party said the incoming U.S. president was committed to his tariff plans.
"I haven't seen any indication in any of the president's public commentary, or even in the comments that he had with me, that he's inclined to change his approach," she was quoted in The Canadian Press as saying Monday.
Tariffs have been a source of internal division in Canadian politics. Deputy Prime Minister Chrystia Freeland resigned amid concerns of U.S. "economic nationalism," and her boss, Justin Trudeau, later followed suit by standing down after nearly a decade in office. Both are from the Labor Party.
Speaking Monday, Jagmeet Singh, the leader of the left-leaning New Democratic Party, said Canada should consider a tit-for-tat trade response by targeting much-desired critical minerals, such as lithium, that are part of cross-border trade.
"So, if (Trump) wants to pick a fight with Canada, we have to make sure it's clear that it's going to hurt Americans as well," he said.
Canada's foreign minister had suggested blocking energy exports to the U.S., though Alberta's premier said that should be off the table.
"Oil and gas is owned by the provinces, principally Alberta, and we won't stand for that," Smith said.
Smith's government had already proposed doubling Alberta's crude oil production and increasing pipeline capacity, all of which it said would support North American security.
Alberta produces about 4 million barrels of oil per day. The Alberta Energy Regulator expects production to increase another 12% by 2026 "as the number of new wells placed on production remains relatively elevated and producers are expected to take advantage of the Trans Mountain Pipeline Expansion."
Trans Mountain, an oil pipeline that feeds ports in British Columbia, may help Canada find new trading partners in Asia.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Donald Trump takes the oath of office Monday for his second, non-consecutive term as U.S. president. After brokering a free-trade deal with top trading partners Canada and Mexico during his first term, Trump has pledged to impose a 25% tariff on goods imported from his North American neighbors, purportedly to control the flow of illegal immigrants and illicit drugs.
For Canada, tariff threats could choke out a financial line to its top trading partner. Nearly $6.3 billion worth of Canadian goods cross the border each day, and the nation accounts for about 60%, or about 4.3 million barrels per day, of crude oil exports to the U.S.
Many of the U.S. refineries are designed to process the heavier type of crude oil found largely in Alberta. But after meeting with Trump during the weekend at his Mar-a-Lago estate in Florida, Alberta Premier Danielle Smith of the United Conservative Party said the incoming U.S. president was committed to his tariff plans.
"I haven't seen any indication in any of the president's public commentary, or even in the comments that he had with me, that he's inclined to change his approach," she was quoted in The Canadian Press as saying Monday.
Tariffs have been a source of internal division in Canadian politics. Deputy Prime Minister Chrystia Freeland resigned amid concerns of U.S. "economic nationalism," and her boss, Justin Trudeau, later followed suit by standing down after nearly a decade in office. Both are from the Labor Party.
Speaking Monday, Jagmeet Singh, the leader of the left-leaning New Democratic Party, said Canada should consider a tit-for-tat trade response by targeting much-desired critical minerals, such as lithium, that are part of cross-border trade.
"So, if (Trump) wants to pick a fight with Canada, we have to make sure it's clear that it's going to hurt Americans as well," he said.
Canada's foreign minister had suggested blocking energy exports to the U.S., though Alberta's premier said that should be off the table.
"Oil and gas is owned by the provinces, principally Alberta, and we won't stand for that," Smith said.
Smith's government had already proposed doubling Alberta's crude oil production and increasing pipeline capacity, all of which it said would support North American security.
Alberta produces about 4 million barrels of oil per day. The Alberta Energy Regulator expects production to increase another 12% by 2026 "as the number of new wells placed on production remains relatively elevated and producers are expected to take advantage of the Trans Mountain Pipeline Expansion."
Trans Mountain, an oil pipeline that feeds ports in British Columbia, may help Canada find new trading partners in Asia.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
