Canada Counters US Tariffs with Counter-Measures, Energy Leverage Debated

A trade war between Canada and the US has taken shape after the Trump administration imposed 50% tariffs on $28 billion worth of Canadian goods. In response, Canadian Prime Minister Carney announced counter-tariffs covering $27.6 billion in imports from the US.

Ontario Premier Doug Ford suggested using Canadian energy as leverage in the trade war, but Alberta Premier Danielle Smith strongly disagreed. 'I cannot think of a more disastrous policy decision than cutting off or taxing Alberta's oil to the United States,' she said, warning that losing the US market would lead to the loss of at least half a million jobs in the oilsands.

Oil and gas analyst Jeremy McCrea echoed Smith's concerns, cautioning against using energy as a tactic in the trade war. 'There is already a lot of volatility with Iran,' he said, 'and adding additional tariffs on Canadian energy would only make things worse.'