Ford Suggests Blocking Oil Exports to US Amid Trade War

Ontario Premier Doug Ford has suggested that Prime Minister Mark Carney consider blocking oil exports to the United States in response to trade tariffs. This proposal is met with resistance from Alberta Premier Danielle Smith, who wants to double oil production.

The Constitution Act of 1867 assigns powers exclusively to either the provinces or the feds, and provides a residual power for Parliament to make laws for Canada's peace, order, and good government in relation to all matters not assigned to provinces. This means Ottawa could impose embargoes or taxes on Alberta oil without violating the division of powers.

Ottawa would have strong arguments to support this move, including the 1982 Supreme Court decision in the Exported Natural Gas Tax Reference, which ruled that a federal tax proposed by the Pierre Trudeau government was a valid exercise of the federal taxation power. This sets a precedent for Ottawa's ability to impose taxes on natural resources, including oil.