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Canada’s energy exports to US hit with 10% Trump tariff over fentanyl crisis

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American’s northern neighbor will get the same 25% tariff except with a 10% tariff on Canadian energy resources. That will continue “until Canada cooperates with the U.S. against drug traffickers and on border security,” the statement said.

President Donald Trump on Saturday moved to hold Mexico, Canada and China accountable with tariffs on the nation’s top three trading partners, raising concerns about the potential for higher prices.

“This was done through the International Emergency Economic Powers Act because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Trump wrote on Truth Social. “We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.”

Trump put in place a 25% tariff “to be paid for by Mexican producers until Mexico cooperates with the U.S. in the fight against drugs,” a White House statement said.

Tariffs are taxes paid by the companies that import goods.

Fentanyl is an opioid blamed for more than 75% of U.S. overdose deaths.

“Mexican cartels are the world’s leading traffickers of fentanyl, meth, and other drugs,” the statement said. “These cartels have an alliance with the government of Mexico and endanger the national security and public health of the United States.”

American’s northern neighbor will get the same 25% tariff except with a 10% tariff on Canadian energy resources. That will continue “until Canada cooperates with the U.S. against drug traffickers and on border security,” the statement said.

Trump’s Canadian tariff is further aimed a stopping illegal border crossings.

“Illegal border crossings from Canada reached historic new highs every year for the last four fiscal years,” the White House said.

For China, the tariff will be an additional 10% until it cooperates with the U.S. on the fight against fentanyl.

“The Chinese Communist Party has subsidized Chinese chemical companies to export fentanyl,” the White House said. “China not only fails to stem the source of illicit drugs but actively helps this business.”

The tariff’s were posted on The White House’s X account Saturday afternoon.

Mexico, Canada and China are the top three U.S. trading partners responsible for about 40% of U.S. imports in 2024. Some economists say the move could push prices higher for U.S. consumers. It could also start a trade war. All three countries have promised to respond in kind.

Trump initially said the tariffs would be put in place on Jan. 20, but didn’t immediately follow through on that. Rather, he waited until Feb. 1.

Trump promised during his inaugural address that tariffs would make America “rich as hell.”

Trump also promised tariffs would help lower the tax burden on Americans.

“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” the president said.

Trump’s tariffs could generate $450 billion in revenue a year, according to adviser and investor John Paulson. The amount such tariffs would ultimately bring in depends on multiple factors, including how other nations respond to U.S. tariffs. That makes it “highly uncertain,” according to credit-rating agency Moody’s.

Trump previously said he couldn’t guarantee that his tariff plans will not raise prices for U.S. consumers.

Tariffs could raise prices for U.S. consumers and slow economic growth. S&P Global, a credit-rating agency, reported that Trump’s proposed tariffs could boost inflation by 1.8% and lower U.S. economic output by 1%, according to a post-election report.

Canadian Prime Minister Justin Trudeau said Friday Canada was prepared to respond.

“If the president does choose to implement any tariffs against Canada, we’re ready with a response – a purposeful, forceful but reasonable immediate response,” Trudeau said.

“We won’t relent until tariffs are removed,” the prime minister said.

Mexican President Claudia Sheinbaum said Friday that Mexico “will always maintain dialogue with the U.S. and that Mexico has multiple plans for a response.”

The United States-Mexico-Canada Agreement, or USMCA, governs trade between the U.S. and its northern and southern neighbors. It went into force on July 1, 2020, and Trump signed the deal.

U.S. goods and services trade with USMCA totaled an estimated $1.8 trillion in 2022. Exports were $789.7 billion and imports were $974.3 billion. The U.S. goods and services trade deficit with USMCA was $184.6 billion in 2022, according to the Office of the United States Trade Representative.

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Alberta

Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

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From Pierre Poilievre

The tiny town of Hardisty, Alberta (623 people) moves $90 billion in energy a year—that’s more than the GDP of some countries.

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Why it’s time to repeal the oil tanker ban on B.C.’s north coast

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The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority

From the Canadian Energy Centre

By Will Gibson

Moratorium does little to improve marine safety while sending the wrong message to energy investors

In 2019, Martha Hall Findlay, then-CEO of the Canada West Foundation, penned a strongly worded op-ed in the Globe and Mail calling the federal ban of oil tankers on B.C.’s northern coast “un-Canadian.”

Six years later, her opinion hasn’t changed.

“It was bad legislation and the government should get rid of it,” said Hall Findlay, now director of the University of Calgary’s School of Public Policy.

The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern B.C. ports.

Targeting products from one sector in one area does little to achieve the goal of overall improved marine transport safety, she said.

“There are risks associated with any kind of transportation with any goods, and not all of them are with oil tankers. All that singling out one part of one coast did was prevent more oil and gas from being produced that could be shipped off that coast,” she said.

Hall Findlay is a former Liberal MP who served as Suncor Energy’s chief sustainability officer before taking on her role at the University of Calgary.

She sees an opportunity to remove the tanker moratorium in light of changing attitudes about resource development across Canada and a new federal government that has publicly committed to delivering nation-building energy projects.

“There’s a greater recognition in large portions of the public across the country, not just Alberta and Saskatchewan, that Canada is too dependent on the United States as the only customer for our energy products,” she said.

“There are better alternatives to C-48, such as setting aside what are called Particularly Sensitive Sea Areas, which have been established in areas such as the Great Barrier Reef and the Galapagos Islands.”

The Business Council of British Columbia, which represents more than 200 companies, post-secondary institutions and industry associations, echoes Hall Findlay’s call for the tanker ban to be repealed.

“Comparable shipments face no such restrictions on the East Coast,” said Denise Mullen, the council’s director of environment, sustainability and Indigenous relations.

“This unfair treatment reinforces Canada’s over-reliance on the U.S. market, where Canadian oil is sold at a discount, by restricting access to Asia-Pacific markets.

“This results in billions in lost government revenues and reduced private investment at a time when our economy can least afford it.”

The ban on tanker traffic specifically in northern B.C. doesn’t make sense given Canada already has strong marine safety regulations in place, Mullen said.

Notably, completion of the Trans Mountain Pipeline expansion in 2024 also doubled marine spill response capacity on Canada’s West Coast. A $170 million investment added new equipment, personnel and response bases in the Salish Sea.

“The [C-48] moratorium adds little real protection while sending a damaging message to global investors,” she said.

“This undermines the confidence needed for long-term investment in critical trade-enabling infrastructure.”

Indigenous Resource Network executive director John Desjarlais senses there’s an openness to revisiting the issue for Indigenous communities.

“Sentiment has changed and evolved in the past six years,” he said.

“There are still concerns and trust that needs to be built. But there’s also a recognition that in addition to environmental impacts, [there are] consequences of not doing it in terms of an economic impact as well as the cascading socio-economic impacts.”

The ban effectively killed the proposed $16-billion Eagle Spirit project, an Indigenous-led pipeline that would have shipped oil from northern Alberta to a tidewater export terminal at Prince Rupert, B.C.

“When you have Indigenous participants who want to advance these projects, the moratorium needs to be revisited,” Desjarlais said.

He notes that in the six years since the tanker ban went into effect, there are growing partnerships between B.C. First Nations and the energy industry, including the Haisla Nation’s Cedar LNG project and the Nisga’a Nation’s Ksi Lisims LNG project.

This has deepened the trust that projects can mitigate risks while providing economic reconciliation and benefits to communities, Dejarlais said.

“Industry has come leaps and bounds in terms of working with First Nations,” he said.

“They are treating the rights of the communities they work with appropriately in terms of project risk and returns.”

Hall Findlay is cautiously optimistic that the tanker ban will be replaced by more appropriate legislation.

“I’m hoping that we see the revival of a federal government that brings pragmatism to governing the country,” she said.

“Repealing C-48 would be a sign of that happening.”

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