A Canadian response to U.S. tariffs would be geographically fair and would not target Alberta, Canada's primary oil-producer, said Federal Energy and Natural Resources Minister Jonathan Wilkinson on Wednesday.
Wilkinson said Canada's tariff response would focus on products in a way that would harm Americans more than Canadians.
President Donald Trump is now threatening two phases of tariffs against Canada — set to begin on Saturday.
Initial tariffs are described as punitive measures, aimed at addressing specific issues like the flow of drugs, particularly fentanyl, and illegal immigration at the U.S.-Canada border.
The second phase of tariffs is expected to be introduced in spring 2025, with a report due on April 1. These tariffs are part of a broader trade policy aimed at reducing U.S. trade deficits and protecting domestic industries. They are more strategic and less about immediate border security.
Alberta Premier Danielle Smith has been vocal about her opposition to using Alberta's oil as a bargaining chip in a potential trade war with the U.S.
"An export ban on Alberta oil would spark a new national unity crisis. We won't stand for the feds trying to cut off our exports to the U.S.," said Smith.
"Using Alberta oil as a pawn in trade negotiations would be the ultimate betrayal. It would be devastating to our economy."
Analysts predict a potential decline in Canada's GDP by around 2.6% or roughly CAD $78 billion annually if Trump follows through on tariffs — pushing Canada's economy into recession by mid-2025.
