Canadian Back Oil Tariffs in Trump Trade War

The findings indicate a deep-seated frustration among Canadians over U.S. President Donald Trump’s trade policies. The poll, conducted by Nanos Research Group, found that 82 per cent of Canadians support increasing the price of oil exports to the U.S. if Trump implements tariffs on Canadian products while exempting energy.

72 per cent of respondents from Canada’s oil-rich Prairie provinces, including Alberta and Saskatchewan, supported such actions. The strongest regional backing came from the Atlantic provinces, where nearly 90 per cent of residents favour export taxes as a countermeasure.

Beyond oil, 79 per cent of Canadians support retaliatory tariffs on U.S. imports even if it leads to higher prices domestically. This underscores a willingness among the public to endure economic consequences in order to challenge what they perceive as unfair trade policies.

Oil is Canada’s primary leverage in trade negotiations with the U.S., given that America imports approximately four million barrels of crude daily from Canada. Many U.S. refineries, particularly in the Midwest depend on Canadian heavy crude.

Trump’s recent executive order proposed a 25 per cent duty on all Canadian exports, with energy products facing a reduced 10 per cent tariff. The justification cited was to curb the influx of fentanyl into the U.S., despite minimal evidence of significant fentanyl smuggling from Canada. Following discussions between Trump and Trudeau, these tariffs have been postponed for 30 days.

While Trudeau’s government has kept export taxes on the table as a potential retaliatory measure, the prime minister has maintained a cautious approach, emphasizing the importance of a unified national response. He has assured Canadians that no single region or industry will be disproportionately affected, and efforts are underway to work collaboratively with provincial leaders to address U.S. trade policies.

However, Alberta Premier Danielle Smith remains strongly opposed to restrictions on energy exports. She refused to endorse a joint statement by Canadian political leaders that did not explicitly rule out oil export taxes. Smith has warned that Alberta will not fully support federal trade policies unless threats to the energy sector are unequivocally dismissed.

Despite widespread public approval, export levies on oil would likely be a measure of last resort. After all, they could negatively impact Canada’s economy and increase costs for domestic consumers. Such a move could also disrupt key infrastructure such as Enbridge Inc.’s Line 5 pipeline, which transports oil from Alberta through the U.S.

As trade negotiations with the U.S. continue, Canada’s government faces a delicate balancing act: responding firmly to American tariffs while safeguarding economic interests. Whether or not oil export taxes are imposed, the overwhelming public support for such measures signals a shift in Canadian attitudes toward economic retaliation, potentially shaping the country’s trade policy in the months ahead.

 

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