Alberta Premier Danielle Smith, who just visited Donald Trump this weekend, warned Ottawa Monday morning against the scenario of a blockage of energy exports to the United States in response to the US president-elect’s threat of tariffs. But Ontario Premier Doug Ford later said he wanted to keep that option open.
“Oil and gas belong to the provinces, primarily Alberta, and we will not tolerate” such an energy embargo, said Ms.me Smith to reporters during a virtual press conference Monday morning.
Federal NDP Leader Jagmeet Singh said Monday that in response to Mr. Trump’s threat, he wanted to see Canada block exports to the United States of essential minerals such as aluminum, lithium and potash. “We must show that if he wants to make decisions that will impact Canada, it will also hurt the United States,” Mr. Singh declared at a press conference in Ottawa.
Doug Ford, for his part, admitted that the last thing he wanted to see was an embargo on exports of energy and essential minerals to the United States. But he adds that Canada should not rule out any means of inflicting economic pain on the United States if the tariff war were to escalate.
Canadian exports of essential minerals to the United States were valued at nearly $30 billion in 2023. This represents almost 60% of the value of all Canadian exports of essential minerals.
“I want to ship them more essential minerals. I want to ship more energy to them, Mr. Ford said. But let’s be clear: if they come after us head on, I won’t hesitate to pull out every tool we have until it hurts them. But that’s the last thing I want to do. »
“Ultimate threats”
The Minister of Foreign Affairs, Mélanie Joly, did not rule out an embargo on energy this weekend in response to Mr. Trump’s promise to impose customs tariffs of 25% on Canadian products.
Danielle Smith said Monday that the federal government should not make “empty threats” and that in any case, it was not up to Minister Joly to make this decision. She further argued that cutting off pipeline supplies through Michigan would choke off essential supplies to Ontario and Quebec.
If Ottawa decided to cut exports to the United States, “they would find themselves faced with a crisis of national unity at the same time as a crisis with our American trading partners,” said Mr.me Smith.
The Premier of Alberta believes that Canada must prepare for the entry into force of tariffs on January 20, the first day of Mr. Trump’s inauguration. “In the president’s public comments, or even in comments he’s had with me [samedi]I have not seen any indication that he is inclined to change his approach, ”she said Monday.
Retaliatory measures
In Ottawa, Mr. Singh noted that Mr. Trump still intends to implement large-scale tariffs after he and members of his administration met with Minister Joly, Prime Minister Justin Trudeau and the Finance Minister, Dominic LeBlanc, shows that he cannot be reasoned with.
“We know that meeting Donald Trump is not going to work: he is not someone we can talk to and discuss solutions,” said the New Democratic leader. He is a bully and the only thing he understands is strength and pain. » Mr. Singh believes that a blockage of exports of critical minerals would be a starting point and that Canada must continue to examine “all options”.
Canada is a major exporter to the United States of several essential minerals, including graphite, potash and zinc. The United States imports all of its graphite, which is used in the manufacture of a wide range of products, from pencils to nuclear reactors. China, Mexico and Madagascar are the other main suppliers of graphite to the American market.
Minister Joly said on the weekend that Canadians must “be ready” to face economic threats, saying all leaders must put Canada first and show a united front.
“We have to be very realistic, very pragmatic, and we have to be ready, because we cannot ignore what President-elect Trump said. Because when he says something, usually he does it,” said Mme Joly Sunday on the show Rosemary Barton Live from the CBC.
The minister added that Ottawa is pursuing a strategy to engage the new U.S. administration through measures that include a new border plan, the development of military alliances and cooperation on energy issues. “And at the same time, we are working on a retaliation plan,” Ms.me Joly.
“I cannot go into detail about this retaliatory plan, because I think it would be a bad strategy. But what I can tell you is that everything is on the table. »
The trade balance
Danielle Smith visited Mr. Trump at his Florida residence over the weekend as the guest of Canadian businessman Kevin O’Leary, who has previously suggested that it would be beneficial for Canada to combine its economy with that of the United States and to “erase the border” separating the two countries
Mme Smith will also attend Mr. Trump’s inauguration next week in Washington. She recently led a diplomatic offensive in the United States, meeting with American elected officials and appearing in the media south of the border. She argued that the tariffs would hurt Canadians, but would also hit American consumers, particularly with higher gas prices at the pump.
Mme Smith said Monday that the president-elect’s biggest displeasure is the trade imbalance with Canada; she also expects that the tariffs promised by Mr. Trump will remain in effect until this problem is resolved.
“I think the solution is to find ways to buy more American products, and that seems to me to be the most logical course that we should take. So I’m going to put that on the table,” she said. Mme Smith and other prime ministers are expected to meet with Prime Minister Justin Trudeau on Wednesday to discuss the issue.
“There are a lot of rumors circulating,” Mr. Ford said of possible Canadian retaliatory measures. But when we get there on Wednesday, we’ll expect a list and we’ll need that[Ottawa] be 100% ready. »
Energy exempt from measures?
Mme Smith “doesn’t expect exemptions” for the oil and gas industry: “Our job will be to work overtime to make sure we can make the case for exemptions.”
When asked whether excluding energy from retaliatory measures could harm the negotiating position of other prime ministers, or of Canada as a whole, Ms.me Smith responded that talking about energy is part of the case to avoid tariffs on all Canadian products.
She points out that if Alberta’s energy exports were removed from the trade equation, the Americans would run a trade surplus with Canada. “It’s an argument that I think should allow us to say that we should continue to have a tariff-free relationship, because they need our energy. »
Alberta New Democratic Party Leader Naheed Nenshi posted on social media Monday that he hopes Premier Smith’s diplomatic attempts will be successful, but believes the new U.S. administration poses an existential threat on all Canadians.
“The danger of working solo is that Alberta becomes isolated, irrelevant or, worse, used as a pawn in a larger game. It is only by working together that we can guarantee the protection of Alberta and Canadian interests,” he maintained.
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