Canada trade chief warns oil and gas exports could come into play | Real Time Headlines

if elected president Donald Trump fulfilled his threat Tariffs imposed on Canadian goodsCanada’s International Trade Minister Mary Ng said Thursday that Ottawa is prepared to retaliate through possible taxes on the energy industry.

“Everything is on the table,” Wu told Global Markets reporters Simma on CNBC’s “Squawk on the Street.”

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

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

“If you were to put tariffs on Canada, it would actually make things more expensive for Americans,” she added.

trump card Threats to impose 25% tariff on all Canadian exports Take office on Monday. The threat is similar to those against Mexico, one of the three parties to the U.S.-Mexico-Canada trade agreement. Trump has also talked about raising tariffs on Chinese imports by 10%.

The trading relationship between Canada and the United States is virtually unparalleled. 2022, Canada Biggest buyer The largest exporter of goods to the United States and the third largest exporter of goods to the United States

Wu and her team are currently drafting a list of U.S. exports to Canada that could be subject to additional tariffs if trade tensions escalate. “Everything will be on the table,” she said.

The same goes for Canadian goods entering the United States.

“You’re almost certain that if you’re buying something in a supermarket… think about a candy bar. There’s probably some Canadians there. So if you pay $4 today, you might pay $5 tomorrow,” Wu said.

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

“As Trade Canada, I have always had a mission of diversity,” Wu told CNBC. “It’s been really great for us to work with the United States, but absolutely we also need to look for opportunities around the world. And we do that.”

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

Trump imposes tariffs on Canada in first term Steel and aluminum exports to the united states

The move prompted Ottawa to announce retaliatory taxation Beef, chocolate, ketchup and other American products.

At that time, Canada made no secret of its selection criteria U.S. exports will be hit by additional tariffs. Prime Minister Justin Trudeau’s government deliberately chose places of political influence, Such as battleground states and states with strong representation in Congress.

The idea is that any adverse economic effects from a drop in exports will be felt most acutely by people in the communities where the products are made or grown. In turn, they would put more pressure on elected representatives in Washington – including Trump, who is running for a second term – to resolve tensions.

Ng said that this time, Canada hopes to “find more common ground” before the situation escalates. She also said Ottawa is working to better secure the border between the United States and Canada. This may help Trump fulfill important promises he made during the campaign.

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

Kirsten Hillman, Canada’s ambassador to the United States, said greater cooperation could include buying more products from the United States. Associated Press on Monday. Hillman said that 70 percent of Canada’s military equipment is purchased from the United States.

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

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

exist Announce resignationFreeland, who is also Canada’s Finance Minister, pointed out that Canada and Trudeau have differences on the direction of Canada’s trade policy with the United States.