“Possible Consequences of Oil Export Restrictions on the US”
Canada’s energy minister, Jonathan Wilkinson, mentioned in an interview with Reuters that if a trade dispute with the U.S. intensifies, Canada may consider implementing non-tariff measures like limiting oil exports to the United States or imposing export duties on products. Wilkinson also stated the potential use of non-tariff actions on critical minerals, which could increase the U.S.’s reliance on China. Canada is a major supplier of imported oil to the U.S., providing approximately 4 million barrels per day to Midwest refineries. The escalating trade war between the U.S. and Canada saw President Trump announcing increased tariffs on Canadian steel and aluminum imports, with later discussions possibly leading to a reduction in tariffs. Various officials, including Ontario Premier Doug Ford and Alberta’s energy minister Brian Jean, have expressed a desire to de-escalate the situation and explore options for resolution. The possibility of Canada imposing tariffs on U.S. ethanol as part of retaliatory measures is being considered if the trade war continues to worsen. The trade tensions between the U.S. and Canada have led to discussions on potential tariffs and retaliation strategies.
U.S. farmers exported a record 1.54 million gallons of ethanol to Canada in September of last year, which was about double the amount from three years earlier, as reported by the U.S. Energy Information Administration. The day started off in one direction but quickly shifted in various ways, ultimately returning to the starting point, according to Wilkinson, referring to the swift changes that impacted financial markets. Wilkinson emphasized the importance of reaching a resolution that includes the prompt removal of tariffs. (Reporting by Jarrett Renshaw and Arathy Somasekhar in Houston; Editing by Nia Williams and Lincoln Feast.)
