With U.S. President-elect Donald Trump showing no sign of backing down from his proposed 25 percent tariffs on Canadian goods, Conservative Leader Pierre Poilievre says Trump should remember that the U.S. benefits from low Canadian oil prices before he goes ahead with his threat.
Canada has been selling its oil at a “massive price discount” and American refineries have “profited” at Canada’s expense, said Poilievre during a Jan. 9 press conference in Ottawa.
Tariffs on Canadian energy would mean job losses for many Americans, said Poilievre, adding both countries are better off without tariffs as Canada sells its oil and the U.S. gets “low-cost, totally reliable, 100 percent ally” energy.
“I would remind our American friends that they benefit from our affordable, reliable energy, and the alternative is Venezuela, Iran, and other foreign dictatorships,” Poilievre said. “Why would we not want to have a North American energy market that enriches us both?”
The United States is the largest consumer of Canadian oil and gas. In 2023, it received 97 percent of Canada’s crude oil exports, with the majority, 87 percent, coming from Alberta–the country’s largest oil producer.
Trump has threatened to slap a 25 percent tariff on all imports coming from Canada unless Ottawa addresses the flow of illegal immigration and drugs at the border. Trump on Jan. 7 doubled down on his promise to impose tariffs on Canada when he takes office, and added he would consider using “economic force” to merge Canada with the United States.
Trump has argued that the United States is “subsidizing” Canada, and that the United States doesn’t rely on Canadian products like lumber, dairy, and automotives.
According to the U.S. Bureau of Economic Analysis, the U.S. trade deficit with Canada amounted to US$67.9 billion (C$91.6 billion) in 2023. Meanwhile, Statistics Canada estimates Canada’s surplus with the U.S. last year was US$80.5 billion ($108.6 billion). Trade data reported by the two countries varies due to differences in assumptions.
In 2023, crude oil exports accounted for 16 percent of Canada’s total export value, estimated at $124 billion.
Alberta’s leaders have said that the federal government’s cancellation of pipeline projects that would have carried Canadian oil and gas to other markets, such as the Energy East pipeline, has meant that Canada has to sell its energy products at deeper discounts to the United States.
