Canada's Oil and Gas Card Could Upend Trump's Trade War Plans
Canada and the US are locked in a trade war, with both sides imposing tariffs on each other's goods. However, Canada has a powerful card up its sleeve, oil and gas exports.
The country is the largest supplier of crude oil to the US, accounting for 90 percent of its imports last year. In fact, the US relies so heavily on Canadian oil that it would be severely affected if Canada were to impose tariffs on its exports.
According to Paasha Mahdavi, an oil and gas policy expert, 'the world is not lacking for buyers for oil.' This means that Canada could potentially sell its oil elsewhere if the US imposes new tariffs.
Alberta Premier Danielle Smith has warned against any proposals to impose levies on oil and gas exports, saying it would be 'devastating' for both economies. However, some experts believe that Canada has the upper hand in this situation, given its significant leverage over the US market.