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.
22:18
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Quick takeaways
- The potential tariffs from the U.S. could substantially disrupt the interconnected energy trade, increasing costs for both Canadian and American consumers.
- Canada aims to lead in clean energy initiatives and address climate change while promoting economic competitiveness amid contrasting U.S. environmental policies.
Deep dives
Impact of Potential Tariffs on Energy Trade
Canada and the U.S. share a significant energy trading relationship, with Canada being the largest supplier of energy to the U.S., providing around 4 million barrels of oil daily. The possibility of tariffs imposed by the U.S. could disrupt this trade, leading to increased costs for consumers, with estimates suggesting a potential increase of 75 cents per gallon at the pump. Such tariffs would not only hurt Canada but also American consumers who rely on Canadian energy resources, such as natural gas for the Pacific Northwest. The strong interconnectedness of the energy markets means that any disruption through tariffs could have wide-ranging economic implications for both nations.
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