financetom
Business
financetom
/
Business
/
Canada could restrict its oil exports to US if Trump trade war escalates
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Canada could restrict its oil exports to US if Trump trade war escalates
Mar 11, 2025 4:34 PM

HOUSTON (Reuters) - Canada could impose non-tariff measures such as restricting its oil exports to the United States or levying export duties on products if a trade dispute with the United States escalates further, Canada's energy minister Jonathan Wilkinson said on Tuesday. 

"When we are talking about non-tariff retaliation, it could be about restricting supply, it could be putting our own export duties on products. It could be energy and minerals, it could be broader than that," Wilkinson said in an interview with Reuters.

"Everything is on the table."

Canada is the top supplier of imported oil to the United States, providing around 4 million barrels per day mainly to refineries in the Midwest that are largely engineered to run its grades. 

U.S. President Donald Trump on Tuesday ramped up the burgeoning trade war with Canada, vowing to double tariffs set to take effect within hours on all imported steel and aluminum products from America's northern neighbor to 50% - although he later said he would likely lower them after Canadian officials agreed to talks.

Trump's latest salvo followed Ontario Premier Doug Ford's announcement that he would place a 25% surcharge on the electricity Canada's most populous province supplies to more than one million U.S. homes unless Trump drops all tariff threats against Canada's exports into the U.S.

Ford later agreed to suspend the surcharge and meet with U.S. Commerce Secretary Howard Lutnick on Thursday, calling for cooler heads to prevail. 

Alberta's energy minister, Brian Jean, whose province is home to the bulk of Canada's oil industry, said earlier on Tuesday that he wants to de-escalate the dispute, and had provided several options to Washington to do so.

Wilkinson told Reuters that Canada is considering imposing tariffs on U.S. ethanol as part of a second tranche of trade penalties if Trump continues to escalate the trade war.

U.S. ethanol, a crucial trade product for U.S. farmers, is "absolutely on the list of things" that could be included if Trump, for example, moves forward with plans to impose 25% tariffs on Canadian goods in April, Wilkinson said.

Canada has threatened retaliatory tariffs on $155 billion of U.S. imports. Officials identified an initial tranche of $30 billion of goods that would face tariffs but said the remainder of the list is under consideration. 

U.S. ethanol exports to Canada hit record highs in recent months to help Canada meet its clean fuel program. It is cheaper than Canadian ethanol, Wilkinson said, due to subsidies in the U.S. Renewable Fuel Standard. 

U.S. farmers sent a record 1.54 million gallons of ethanol to Canada in September of last year, roughly double the figure three years prior, according to the U.S. Energy Information Administration. 

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Vale Boosts Full-Year Iron Ore Production Guidance; Shares Rise
Vale Boosts Full-Year Iron Ore Production Guidance; Shares Rise
Sep 11, 2024
11:55 AM EDT, 09/11/2024 (MT Newswires) -- Vale's (VALE) shares rose past 2% in recent Wednesday trading after the company raised its full-year 2024 iron ore production guidance. The company said that for 2024, it expects to produce 323 million to 330 million metric tons of iron ore, up from a previous outlook of 310 million to 320 million metric...
Mawson Infrastructure Signs Marketing Services Deal with Outside the Box Capital; Shares Fall
Mawson Infrastructure Signs Marketing Services Deal with Outside the Box Capital; Shares Fall
Sep 11, 2024
11:53 AM EDT, 09/11/2024 (MT Newswires) -- Mawson Infrastructure Group ( MIGI ) said Wednesday that Outside The Box Capital has agreed to offer certain marketing and distribution services to the company for a six-month term for a fee of $100,000 worth of Mawson's restricted common shares. The company said it recently extended its lease deal with Jewel Acquisition by...
SpaceX, OpenAI Among Private Companies Outperforming Public Counterparts, Forge Global Says
SpaceX, OpenAI Among Private Companies Outperforming Public Counterparts, Forge Global Says
Sep 11, 2024
12:00 PM EDT, 09/11/2024 (MT Newswires) -- Forge Global Holdings ( FRGE ) , a private market platform, on Wednesday listed SpaceX and OpenAI as two of the seven private companies outperforming their public market counterparts over the last year. In addition to SpaceX and OpenAI, the Private Magnificent 7 includes Stripe, Databricks, Fanatics, Scale AI and Rippling, Forge Global...
Pure Energy Says SLB Completes Earn-in For Clayton Valley Lithium Project
Pure Energy Says SLB Completes Earn-in For Clayton Valley Lithium Project
Sep 11, 2024
11:59 AM EDT, 09/11/2024 (MT Newswires) -- Pure Energy Minerals ( PEMIF ) on Wednesday said its partner, SLB, successfully completed a technology demonstration and testing program and can now assume ownership of the entire Clayton Valley lithium brine project (CV Project) in Esmeralda County, Nevada. Pure Energy will receive a 3% net smelter return royalty payable on all commodities...
Copyright 2023-2026 - www.financetom.com All Rights Reserved