Canada Determined, Enbridge Resilient, on Tariffs

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With tariff pressures increasing, Alberta's government said diplomacy was the best strategy, though Canadian energy company Enbridge Incorporated (Calgary, Alberta) said it was largely insulated from the U.S. import tax.

Ostensibly over concerns about the flow of illicit drugs, U.S. President Donald Trump last week increased tariffs on many Canadian goods from 25% to 35%. In response, Alberta Premier Danielle Smith said she's convinced that diplomacy is the best path forward after meeting with U.S. lawmakers and members of the administration.

"I urge the federal government to continue negotiating to resolve these tariff issues and restore a free- and fair-trade agreement with the United States, while diversifying and strengthening the Canadian economy by unleashing our world-class natural resource sector," she said Friday.

Several leaders from Alberta are in Boston this week for the five-day National Conference of State Legislators, hoping to make their case to U.S. trading partners. Total exports from Alberta to the U.S. economy totaled USD$117 billion last year, accounting for nearly 90% of the provincial exports. Energy product exports accounted for about 80% of that revenue stream.

Canada accounts for about 60% of total U.S. crude oil imports, and much of that comes from Alberta, where the thick crude oil matches the slates processed by many U.S. refineries. The U.S. also is a net importer of natural gas from Canada.

On Friday, Canadian energy company Enbridge, which has an expansive pipeline network spanning much of North America, said it was largely insulated from tariffs.

"On the tax policy front, the extension of bonus depreciation provides benefits to Enbridge's near-term growth and our sanctioned or late-stage renewable projects are not expected to be impacted negatively by the One Big Beautiful Bill Act," Greg Ebel, the company's chief executive officer, said Friday.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for a company profile of Enbridge.

Elsewhere, Canadian Prime Minister Mark Carney headed to Vancouver on Monday to meet with British Columbia Premier David Eby. Last week, Eby said that while Trump argues with his trading partners, Canada sees potential in supplying energy to Asia's economies, some of which have few energy resources of their own.

Alberta's government last week put USD$145 million toward a new, 287-kilovolt transmission line and supporting infrastructure necessary to power the Cedar LNG export facility on clean energy, rather than natural gas. This is Alberta's second such tranche in as many years.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more about Cedar LNG by viewing the project report.

The Cedar LNG facility is supplied by the Coastal Gaslink network. A floating liquefied natural gas (FLNG) unit, Cedar LNG is set for completion by 2028. The facility will be powered by renewable energy.

Since Trump returned to office for a second, non-consecutive term, Canadian leaders have pressed for expanded trade options outside North America. Options presently are limited to arteries in coastal British Columbia, though the Port of Vancouver reported a 5% year-on-year increase in cargo to 2024.

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).