Canada considers oil and uranium tariffs in response to Trump tariff threats
In response to threatened tariffs by Donald Trump, Canada is contemplating enacting tariffs on its oil and uranium shipments to the United States.
The Globe and Mail indicates this, referencing accounts from Canadian government representatives.
A source stated, “Canada is still crafting a plan for how to react to Trump's commitments, and a levy on the export of key commodities is a potential avenue.”
In the preceding year, energy deliveries from Canada into the United States amounted to $170 billion. Specifically for crude oil, Canada represented over half of all imports to the US. Curtailing these quantities could generate elevated fuel expenses in the United States.
Specialists surmise that Trump's demands for increased domestic oil output in the US might be unheeded, since this would diminish earnings for manufacturers. Furthermore, they could attempt to increase rates instead of elevating output. Hence, Canada also anticipates gaining from escalating costs.
Further action: The Guardian conveys that the Ontario regional government could enforce constraints on alcohol shipments from the United States, particularly whiskey and bourbon. Ontario had also earlier indicated it might cease power transfers to the United States.
Concurrently, Canada acknowledges that this commercial conflict with the Americans involves fiscal hazards, including a GDP reduction, a depreciated Canadian currency, and the requirement to implement economic aid initiatives.
