Canada’s trade chief warns oil and gas exports could be at stake

If the president-elect donald trump fulfills his threat impose tariffs on Canadian productsOttawa is willing to retaliate with levies that could hit the energy sector, Canada’s International Trade Minister Mary Ng said Thursday.

“Everything is on the table,” Ng told a global markets reporter. Seema Mody on CNBC’s “Squawk on the Street.”

This includes dollar-for-dollar retaliation. Canada’s trade chief also refused to rule out an export tax on Canadian oil and gas bound for the United States.

“Actually, I don’t think the Americans want us to not sell electricity, oil and gas to the United States, because you know, I’m here in New York, the lights of Broadway, a lot of electricity is Canadian,” Ng said.

“If you’re going to impose tariffs on Canada, what you’re really going to do is make things more expensive for Americans,” he added.

Triumph has threatened a blanket 25% tariff on all Canadian exports when takes office Monday. The threat is similar to that directed at Mexico, the three parties to the T-MEC trade agreement. Trump has also talked about increasing tariffs on Chinese imports by 10%.

Canada and the United States have a practically unmatched trade relationship. In 2022, Canada was the biggest buyer of American products and the third largest exporter of goods to the US.

Ng and his team are currently drafting a list of U.S. exports to Canada that could face additional tariffs should trade tensions escalate. “Everything is going to be on the table,” he said.

The same goes for Canadian products entering the United States.

“You can be pretty sure that if you’re buying something (in a) supermarket… think about a chocolate bar. There’s probably something Canadian in there. So if you’re paying $4 today, you might be paying $5 tomorrow.” “Ng said.

The potential threat of a looming trade war with the United States is also prompting Ottawa to continue engaging with the rest of its trading partners around the world, including Japan and the European Union.

“As Trade Canada, I have always had a mandate to diversify,” Ng told CNBC. “It’s really great for us to work with the United States, but, absolutely, we also need to look for opportunities around the world. And we are doing that.”

This is not the first time Trump has used tariff threats in an effort to restart trade negotiations with the United States’ northern neighbor.

During his first term, Trump imposed tariffs on Canadians steel and aluminum exports to the united states

The move prompted Ottawa to announce retaliatory liens about American products like beef, chocolate, ketchup and more.

At that time, Canada did not hide its selection criteria so US exports will be affected with additional tariffs. Prime Minister Justin Trudeau’s government deliberately chose products from politically powerful places, such as battleground states and those with powerful representatives in Congress.

The idea was that any adverse economic impact resulting from a drop in exports would be felt most acutely by people in the communities that manufactured or grew the products. They, in turn, would put additional pressure on their elected representatives in Washington (including Trump, who was running for a second term) to resolve tensions.

This time, Ng said Canada is looking to “find more common ground” before any escalation. He also said Ottawa is working to better secure the border between the United States and Canada. This could help Trump deliver on a key promise he made during the election campaign.

“I think we have a unique opportunity right now for Canada and the United States to build an even stronger economy, a stronger North American economy, by working together,” Ng said.

Increasing this collaboration could include buying more from the United States, said Kirsten Hillman, Canada’s ambassador to the United States. Associated Press on Mondays. Seventy per cent of Canada’s military equipment is purchased in the United States, Hillman said.

When it comes to purchasing more military equipment, “everything is on the table,” Ng told CNBC, from fighter jets to drones.

Canada is currently in the midst of a leadership shakeup. Prime minister Justin Trudeau resigned earlier this month. Trudeau’s resignation came just weeks after his former ally and deputy prime minister christia freeland He also resigned.

In announcing his resignationFreeland, who was also the country’s finance minister, cited differences with Trudeau over the direction of Canada’s trade policy toward the United States.