As President-elect Donald Trump goes full throttle on his proposed 25% tariffs on Canadian goods until they fix their porous border - which America's northern neighbor has already vowed to address - Conservative leader Pierre Poilievere says that Trump should remember that the US benefits from cheap Canadian oil, which they've been selling at a "massive price discount."
According to Poilievre, this has allowed American refineries to have "profited" at Canada's expense, adding that tariffs on Canadian energy would mean many Americans would lose their jobs - and that both countries are better off without them so that the US can continue to get "low-cost, totally reliable 100% 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," he said at a Jan. 9 press conference in Ottawa. "Why would we not want to have a North American energy market that enriches us both?"
The US is the largest consumer of Canadian oil and gas - receiving 97% of the country's crude oil exports in 2023, with the majority (87%) coming from Alberta, the country's largest oil producing region.
On Jan. 7, Trump doubled down on his threat to impose the 25% tariffs on Canada when he takes office, adding that he would consider using "economic force" to merge the two countries.
According to Trump, America is "subsidizing" Canada, and the US doesn't actually need the northern neighbor for things like lumber, dairy and automobiles.
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. -Epoch Times
Officials in Alberta say that the federal government's cancellation of pipeline projects to deliver Canadian oil and gas to other markets has meant that Canada has to sell its energy at deeper discounts to the United States.