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Released February 25, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--As Canadian Prime Minister Justin Trudeau was discussing border issues with the U.S. president, the provincial government of Alberta was calling for a working group to address trade diversity.
A one-month pause on a 10% tariff on energy imported from Canada and another 25% on all other goods is winding down. Tearing up a trade deal he helped revise, U.S. President Donald Trump called for new import taxes in one of his first acts of office, but paused while North American trading partners mulled their response.
Trump said the tariffs were in response to the cross-border flow of immigrants and illicit drugs. Ahead of the start of the virtual meeting of the G7 group of advanced economies, Trudeau on Saturday sought to assure the U.S. president that borders were secure with the help of a new fentanyl czar.
Meanwhile, the provincial government of oil-rich Alberta said it proposed a joint working group with the federal government, provinces and territories to improve and diversify trade arteries in the nation.
"With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy -- going east to west and not always relying on north-south trade," said Devin Dreeshen, Alberta's provincial minister of transportation and economic corridors.
Cross-border trade routes are highly integrated. Automobiles, for example, cross the border several times before completion. Nearly all of Canada's energy exports, meanwhile, head to the United States.
Exports of crude oil, refined petroleum products, natural gas and natural gas liquids were valued at around US$115 billion in 2023, the last full year for which the Canadian government published data. At the time, that accounted for 21% of total Canadian exports.
On the other side of the border, the United States is heavily dependent on Canadian crude oil because U.S. refineries are largely tailored to process the heavier types of crude such as what's found in Alberta, rather than the light, sweet crude found in shale.
Tariffs, meanwhile, cut both ways. If imposed, they would likely throttle the Canadian oil industry, but extra costs may be passed down to a consumer that may have bet on Trump's promise to lower prices.
Tariffs cut politically as well. Trudeau announced his resignation over internal trade rows, while Trump has suggested Canada become part of the federal union.
Canada sends over about 4 million barrels of oil per day to the United States, with about 80% of that coming from Alberta. Those barrels represent about 60% of total U.S. crude oil imports.
But after years of a trade deadlock in North America, Canada may be able to tap the energy-hungry markets in Asia by way of the expanded Trans Mountain crude oil pipeline. Approved in 2019, the expansion pushed the capacity on the 714-mile pipeline that runs from Alberta to 880,000 barrels per day (BBL/d).
Canadian midstream company Pembina Pipeline Corporation ( NYSE:PBA) (Calgary, Alberta), meanwhile, said in December that its Cedar Liquefied Natural Gas (LNG) project in British Columbia would be a top priority for 2025. The facility will consist of a floating liquefied natural gas (FLNG) facility in Kitimat, British Columbia, with a nameplate capacity of 3.3 million tons of LNG per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
"The federal government must play its part to advance the economic corridors that we need from coast to coast to coast to support our economic future," Alberta's minister said. "It is time for immediate action."
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
A one-month pause on a 10% tariff on energy imported from Canada and another 25% on all other goods is winding down. Tearing up a trade deal he helped revise, U.S. President Donald Trump called for new import taxes in one of his first acts of office, but paused while North American trading partners mulled their response.
Trump said the tariffs were in response to the cross-border flow of immigrants and illicit drugs. Ahead of the start of the virtual meeting of the G7 group of advanced economies, Trudeau on Saturday sought to assure the U.S. president that borders were secure with the help of a new fentanyl czar.
Meanwhile, the provincial government of oil-rich Alberta said it proposed a joint working group with the federal government, provinces and territories to improve and diversify trade arteries in the nation.
"With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy -- going east to west and not always relying on north-south trade," said Devin Dreeshen, Alberta's provincial minister of transportation and economic corridors.
Cross-border trade routes are highly integrated. Automobiles, for example, cross the border several times before completion. Nearly all of Canada's energy exports, meanwhile, head to the United States.
Exports of crude oil, refined petroleum products, natural gas and natural gas liquids were valued at around US$115 billion in 2023, the last full year for which the Canadian government published data. At the time, that accounted for 21% of total Canadian exports.
On the other side of the border, the United States is heavily dependent on Canadian crude oil because U.S. refineries are largely tailored to process the heavier types of crude such as what's found in Alberta, rather than the light, sweet crude found in shale.
Tariffs, meanwhile, cut both ways. If imposed, they would likely throttle the Canadian oil industry, but extra costs may be passed down to a consumer that may have bet on Trump's promise to lower prices.
Tariffs cut politically as well. Trudeau announced his resignation over internal trade rows, while Trump has suggested Canada become part of the federal union.
Canada sends over about 4 million barrels of oil per day to the United States, with about 80% of that coming from Alberta. Those barrels represent about 60% of total U.S. crude oil imports.
But after years of a trade deadlock in North America, Canada may be able to tap the energy-hungry markets in Asia by way of the expanded Trans Mountain crude oil pipeline. Approved in 2019, the expansion pushed the capacity on the 714-mile pipeline that runs from Alberta to 880,000 barrels per day (BBL/d).
Canadian midstream company Pembina Pipeline Corporation ( NYSE:PBA) (Calgary, Alberta), meanwhile, said in December that its Cedar Liquefied Natural Gas (LNG) project in British Columbia would be a top priority for 2025. The facility will consist of a floating liquefied natural gas (FLNG) facility in Kitimat, British Columbia, with a nameplate capacity of 3.3 million tons of LNG per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
"The federal government must play its part to advance the economic corridors that we need from coast to coast to coast to support our economic future," Alberta's minister said. "It is time for immediate action."
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
