Canada’s trade chief warned that oil and gas exports could be in play

Ottawa is poised to retaliate with tariffs that could hit the energy sector if President-elect Donald Trump follows through on his threat to impose tariffs on Canadian goods, Canada’s International Trade Minister Mary Ng said Thursday.

“Everything is on the table,” Ng told international market reporter Seema Mody on CNBC’s “Squawk on the Street.”

This includes dollar-for-dollar retaliation. Canada’s trade chief refuses to waive export taxes on Canadian oil and gas to the United States.

“Actually, I don’t think the Americans want us to sell electricity, oil and gas to America; Because you know, I’m here in New York, the lights on Broadway, a lot of them are Canadian Electric,” he said.

“If you’re going to put tariffs on Canada, what it’s going to do is make it more expensive for Americans,” she added.

When Trump took office on Monday, he threatened a blanket tariff of 25% on all Canadian exports. The threat is similar to that made against Mexico, the USMCA trade agreement of the three parties. Trump also talked about raising tariffs on Chinese imports by 10 percent.

Canada and the United States have a trade relationship that is virtually unmatched. It was Canada in 2022. The biggest buyer American goods and the third largest exporter of goods to the United States

Ng and her team are preparing a list of U.S. exports to Canada that could result in additional tariffs as trade tensions escalate. “Everything will be on the table,” she said.

The same is true for Canadian goods imported into the United States.

“If you’re buying something at (a) supermarket… think about a candy bar. You can be sure there will be Canadians in there. So if you’re paying $4 today, you might be paying $5 tomorrow,” Ng said.

The threat of a looming trade war with the United States is prompting Ottawa to continue to engage with other trading partners around the world, including Japan and the European Union.

“As Canada’s Ministry of Commerce, I had the authority to include different things,” Ng told CNBC. “Working with America is great for us, but absolutely, we have to look for opportunities around the world. And we are.”

This is not the first time Trump has used the threat of tariffs to restart trade talks with America’s northern neighbor.

During his first term in office, Trump imposed tariffs on Canadian steel and aluminum exports to the United States.

The move prompted Ottawa to announce retaliatory tariffs on US products such as beef, chocolate, ketchup and more.

Canada did not hide this at the time. Selection criteria To hit additional tariffs on US exports. Prime Minister Justin Trudeau’s government has deliberately chosen products Politically powerful places, Like battleground states and those with powerful representatives in Congress.

The idea was that any negative economic impact of a decline in exports would be felt most in the communities that produced or grew the products. They, for their part, will put more pressure on their elected representatives in Washington – including Trump, who is running for a second term – to resolve the tension.

At this point, Ng said, Canada is looking to “find more common ground” before any escalation. She also said that Ottawa is working to better secure the border between the US and Canada. This could help Trump fulfill a key promise he made on the campaign trail.

“I think we have a very unique opportunity right now for Canada and the United States to work together to build a stronger economy, a stronger North American economy,” he said.

Increasing this cooperation could include buying more from the United States, said Kirsten Hillman, Canada’s ambassador to the United States. Associated Press on Monday. Seventy percent of Canada’s military hardware is purchased from the US, Hillman said.

“Everything is on the table,” Ng told CNBC when it comes to buying more military equipment, from fighter jets to drones.

Canada is currently in the midst of a leadership struggle. Prime Minister Justin Trudeau resigned earlier this month. Trudeau’s resignation comes weeks after his former ally and deputy prime minister. Christina Freeland He stepped down.

in Announcing her resignationFreeland, the country’s finance minister, cited differences with Trudeau over the direction of Canada’s trade policy toward the United States.