POLITICO Energy Why Canada’s energy minister thinks Trump’s tariffs plans are a lose-lose
Jan 27, 2025
In this engaging conversation, Jonathan Wilkinson, Canada's Federal Minister of Energy and Natural Resources, shares his insights on the vital US-Canada energy alliance. He discusses the potential fallout from Trump's proposed tariffs and how they could harm both nations economically. Wilkinson emphasizes the importance of collaboration in renewable energy and delves into Canada's carbon pricing strategy amidst rising climate challenges. He also explores the evolving electric vehicle market, highlighting geopolitical hurdles and the necessity for Western cooperation.
AI Snips
Chapters
Transcript
Episode notes
Canada: A Major Oil Source
- Canada is the biggest foreign oil supplier to the U.S., sending 4 million barrels daily, mostly heavy crude.
- U.S. refineries depend on this because they mainly process heavy crude, unlike U.S. production.
Tariff Impact on Oil
- Tariffs on Canadian oil would force Midwestern refineries to buy crude at a 25% markup, affecting U.S. consumers.
- This would lead to higher gas prices, estimated at a $0.75 increase per gallon.
Serious Tariff Threats
- Jonathan Wilkinson believes that Trump's tariff threats are serious and tied to border security negotiations.
- Canada is already increasing border security but emphasizes potential mutual benefits over tariffs.