Canada Could Cut Us Energy Supply In Reply To Trump’s Tariffs

OTTAWA — Canada is considering cutting off its energy supply to the United States should President-elect Donald Trump impose sweeping tariffs on Canadian goods.

“Everything is on the table,” Prime Minister Justin Trudeau said Wednesday, following a meeting with Canada’s provincial and territorial premiers.

The leader of Canada’s oil-rich province, Alberta Premier Danielle Smith, kept her name off a joint statement from the leaders that attempted to project a united front against an economic attack from Trump that is just days away.

“Federal government officials continue to publicly and privately float the idea of cutting off energy supply to the U.S. and imposing export tariffs on Alberta energy and other products to the United States,” Smith posted on X. “Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs.”

Canada is the largest supplier of energy to the U.S., supplying Americans with about 60 percent of its crude oil imports. And as of 2020, Canada supplied the U.S. with 98 percent of its natural gas imports, 93 percent of its electricity imports and 28 percent of its uranium purchases, government data shows.

Trump has threatened to slap 25 percent tariffs on Canada if it doesn’t tackle the flow of fentanyl and illegal migration at their shared border, although Trudeau has argued that fewer than 1 percent of illegal crossings and fentanyl seizures were at the Canadian border.

The Liberal government has nonetheless revealed a C$1.3 billion spending package to improve border security, while Trudeau and his Cabinet continue to hold talks with the incoming Trump administration.

Premiers for the top oil-producing provinces have warned of a “national unity crisis” if Ottawa leverages Canadian oil in response to tariffs, deepening a regional divide between Ottawa and Western Canada.

Smith and Saskatchewan Premier Scott Moe are also pressuring Trudeau to call a federal election to ensure Canada’s prime minister has a strong mandate to negotiate with Trump. Trudeau, who resigned as Liberal leader earlier this month, will remain prime minister until at least March.

The Liberal Party is simultaneously consumed with the race to replace Trudeau, emboldening some premiers to assume command over tariff talks. Last week, Smith visited Mar-a-Lago, where she said she spoke to Trump twice. She warned Canadians tariffs are coming, while Trudeau’s government accused Smith of selling out Canada’s interests.

Ontario Premier Doug Ford, who oversees more than C$493 billion in two-way trade with the U.S., showed up to Wednesday’s meeting in a MAGA-style blue cap that read “CANADA IS NOT FOR SALE.” He urged his counterparts to remain united during the trade negotiations ahead.

“He’s going to try to devastate our country,” Ford said. “He’s gonna try to divide our country, and we cannot have division in our country.”

Other premiers agree with Trudeau that all options need to remain on the table — even if it means using Canada’s energy as a bargaining chip.

“I see energy as Canada’s queen in this game of chess,” said Newfoundland and Labrador Premier Andrew Furey, whose province produces oil and hydroelectricity that makes its way into the United States.

A trade war will hurt Americans, Quebec Premier François Legault warned in an op-ed directed at Washington lawmakers published ahead of Wednesday’s meeting. Writing in “The Hill,” Legault warned that tariffs on Canada and Mexico could reduce U.S. GDP by at least 1 percent over one year, not including the influence of inflation.

He noted that Quebec supplies U.S. companies with 64 percent of the raw aluminum. “Tariffs of 25 percent would therefore only result in increasing the prices of beer cans, car parts, airplane parts and a host of other products for American consumers and businesses,” he said.

The Canadian Chamber of Commerce is warning that widespread tariffs on Canadian goods could push Canada’s economy into a recession by the middle of the year.

Ten weeks ago, Trudeau’s government worked to convince the country everything would be fine. On Wednesday, they told Canadians to get ready for negotiations and to brace for impact.

The communique noted that if Ottawa retaliates, it will use any new revenue to help Canadian workers and businesses. The leaders also agreed to increase defense spending, advance energy projects and enhance security at the Canada-U.S. border.