Carney Ditches Oil Leverage in US Tariff Fight

Canadian Prime Minister Mark Carney has ruled out using oil exports as leverage against US tariffs. Speaking in Alberta, he said that protecting Canada's reputation as a reliable supplier is more important than any potential retaliatory advantage.

Carney made the comments during a stop in Red Deer, Alberta, where a reporter asked if he would put energy on the negotiating table with Washington. 'I don't see the value of it,' he said, framing trust as Canada's most valuable export and warning that any supplier needs to weigh the cost of cutting a customer off.

This marks a retreat from Carney's previous stance, which was tougher after meeting with Canada's 13 premiers in Charlottetown on July 23. He told reporters at the time that 'everything is on the table', including retaliation, if Ottawa and Washington couldn't reach a deal before new tariffs take effect.

The US has imposed 50% tariffs on roughly $20 billion worth of Canadian goods, covering everything from wine and hockey sticks to milk, beer, and plywood. These tariffs take effect August 19 and exclude oil and potash. Canada's dependence on the US for crude imports - over 60% - had been flagged as a possible lever in the trade fight.