Canada's energy minister warns of trade retaliation as Trump threatens tariffs on Canadian imports
Jonathan Wilkinson, Canada’s energy minister and a potential contender in the race to replace Justin Trudeau as prime minister, refuted Donald Trump’s claim that the US does not need anything from Canada.
“That’s simply false,” Wilkinson said, highlighting the critical role Canadian resources play in the US economy, as reported by BNN Bloomberg.
He emphasized that Canadian crude oil, uranium, potash, and critical minerals are vital to the US and warned that nothing is off the table regarding Canadian trade retaliation, including export taxes.
During a Tuesday news conference, Trump reiterated plans to impose ‘very serious’ tariffs on all Canadian imports and stated, “We don’t need anything they have.”
Wilkinson dismissed this claim, explaining that the US relies heavily on Canadian resources.
He noted that Canadian heavy crude is essential for US refineries, particularly in the Midwest, and pointed out that alternatives like Venezuela or Russia are economically or geopolitically problematic.
Additionally, Wilkinson underscored Canada’s contributions to critical minerals and hydroelectricity, where the US lacks viable substitutes.
Wilkinson will travel to Washington next week to meet with American lawmakers.
Speaking outside a Liberal Party caucus meeting on Wednesday, he explained his approach to addressing the tariff threats, stating that collaboration with US companies and associations is crucial.
“Americans talking to Americans are going to be more effective than Canadians talking to Americans,” Wilkinson said.
He plans to leverage relationships with US companies like ExxonMobil, which owns 70 percent of Canada’s Imperial Oil and supplies US refineries.
Wilkinson also discussed the potential consequences of Trump’s tariffs. He warned that tariffs on Canadian oil would increase US gas prices, tariffs on hydroelectricity would raise electricity costs, and tariffs on potash would drive up food prices.
He called such measures counterproductive, noting they would fuel inflation — the opposite of Trump’s campaign promises.
When asked about the mindset of Canadian oil and resource sector leaders, Wilkinson described their reaction as strategic but concerned. While they are wary of the potential tariffs, they believe collaboration with US stakeholders could mitigate the risks.
Wilkinson stressed the importance of activating US companies and associations, such as the American Petroleum Institute, to advocate against tariffs.
Wilkinson rejected the notion of allowing tariffs to exclude oil while targeting other industries, such as automotive manufacturing. He said Canada would respond thoughtfully to any broad-based tariffs, ensuring maximum pressure on the US while protecting Canadian industries.
The energy minister also pointed to opportunities for deeper collaboration between Canada and the US.
He cited critical minerals like germanium, processed in Canada but vital to US defence applications, as an example of how the two countries could enhance their partnership instead of imposing tariffs on one another.
