Energy Exports as Leverage: A Risky Strategy for Canada

Canada's consideration of using energy exports as leverage in its trade dispute with the US has sparked debate among Canadian leaders. Premiers from Alberta and Saskatchewan have expressed concerns about an oil export tax or restrictions on Canadian oil exports, fearing it would go against a 'Team Canada' approach.

Heather Exner-Pirot of the Macdonald-Laurier Institute discussed the risks of weaponizing energy exports in an interview. She argued that inflicting economic pain on the US could backfire on Canada, hurting domestic oil producers and disrupting supply chains.

Such a move would also undermine Canada's aspirations to be seen globally as a stable and reliable supplier of energy, according to Exner-Pirot. She emphasized that any attempt to inflict economic pain on the US could lead to further American retaliation.