Released January 22, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The tariff threat from the new U.S. administration remains very real, though both parties should remain diplomatic on issues like increased energy trade and border security, Alberta's government said.
Wednesday marked Day 3 of Donald Trump' second term as the U.S. President. Among his first acts of office was to issue hundreds of executive orders that overturned many of his predecessor's policies, such as licensing new offshore wind installations and closing some U.S. territorial waters to drillers.
Revising the North American Free Trade Agreement (NAFTA) during his first stint in the White House, Trump this time pledged to impose a 25% tariff on all goods coming in from U.S. neighbors, but he's held off for now.
"We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers, businesses and consumers given the integration of our markets, along with our critical energy and security partnership," said Alberta Premier Danielle Smith.
The oil-rich province makes Canada the top crude oil exporter to the U.S. With many U.S. refineries tooled to run its heavier type of oil found, Canada accounts for about 60% of total U.S. crude oil imports.
Tariffs on those energy goods would likely trickle down to the consumer level by way of higher gasoline prices. With few other export options, meanwhile, the tariffs would've stifled the Canadian energy sector.
Despite the current calm, Smith said she believed the tariff threat was "still very real." Before his inauguration, she met with Trump at his Mar-a-Lago estate in Florida and left convinced of no change in his position.
Smith's office laid out a series of diplomatic steps that may help address any cross-border issues, such as targeting the flow of illicit drugs and contributing more to NATO. Smith also suggested increased trade in goods such as oil and timber, among Alberta's top exports.
"Finding ways to increase trade in both directions is critical to achieving a win-win for both countries," she said.
Before the inauguration, however, Smith refused to sign a statement on tariffs from her counterparts. These ministers pledged a collective effort to respond to any new tariffs in North America.
"First Ministers agreed to continue united advocacy efforts with key U.S. administration, congressional and business leaders to emphasize the negative impacts of U.S. tariffs on American national interests and the U.S. economy," they said. "Cooperation with Canada offers significant complementary benefits to U.S. priorities."
Divisions over how to respond prompted Deputy Prime Minister Chrystia Freeland to resign in December. Her boss, Justin Trudeau, resigned in January, but will stay on until a replacement is found.
Nearly $6.3 billion worth of Canadian goods cross the border each day. In a statement on the potential tariff threat, the International Monetary Fund (IMF) warned that a tariff-heavy agenda could backfire in the long-term by erasing any of the gains made in the post-pandemic fight against inflation.
"Deregulation could boost output by removing red tape and spurring innovation, but it could also increase financial vulnerabilities," the IMF said.
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).
Wednesday marked Day 3 of Donald Trump' second term as the U.S. President. Among his first acts of office was to issue hundreds of executive orders that overturned many of his predecessor's policies, such as licensing new offshore wind installations and closing some U.S. territorial waters to drillers.
Revising the North American Free Trade Agreement (NAFTA) during his first stint in the White House, Trump this time pledged to impose a 25% tariff on all goods coming in from U.S. neighbors, but he's held off for now.
"We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers, businesses and consumers given the integration of our markets, along with our critical energy and security partnership," said Alberta Premier Danielle Smith.
The oil-rich province makes Canada the top crude oil exporter to the U.S. With many U.S. refineries tooled to run its heavier type of oil found, Canada accounts for about 60% of total U.S. crude oil imports.
Tariffs on those energy goods would likely trickle down to the consumer level by way of higher gasoline prices. With few other export options, meanwhile, the tariffs would've stifled the Canadian energy sector.
Despite the current calm, Smith said she believed the tariff threat was "still very real." Before his inauguration, she met with Trump at his Mar-a-Lago estate in Florida and left convinced of no change in his position.
Smith's office laid out a series of diplomatic steps that may help address any cross-border issues, such as targeting the flow of illicit drugs and contributing more to NATO. Smith also suggested increased trade in goods such as oil and timber, among Alberta's top exports.
"Finding ways to increase trade in both directions is critical to achieving a win-win for both countries," she said.
Before the inauguration, however, Smith refused to sign a statement on tariffs from her counterparts. These ministers pledged a collective effort to respond to any new tariffs in North America.
"First Ministers agreed to continue united advocacy efforts with key U.S. administration, congressional and business leaders to emphasize the negative impacts of U.S. tariffs on American national interests and the U.S. economy," they said. "Cooperation with Canada offers significant complementary benefits to U.S. priorities."
Divisions over how to respond prompted Deputy Prime Minister Chrystia Freeland to resign in December. Her boss, Justin Trudeau, resigned in January, but will stay on until a replacement is found.
Nearly $6.3 billion worth of Canadian goods cross the border each day. In a statement on the potential tariff threat, the International Monetary Fund (IMF) warned that a tariff-heavy agenda could backfire in the long-term by erasing any of the gains made in the post-pandemic fight against inflation.
"Deregulation could boost output by removing red tape and spurring innovation, but it could also increase financial vulnerabilities," the IMF said.
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).
