The United States may have to source oil from countries like Venezuela if it disrupts trade with Canada, according to Canada’s Foreign Minister, Mélanie Joly. She highlighted the impact of U.S. President Trump’s proposed 25% tariffs on Canadian imports, emphasizing that such measures would affect “real people” amid a potential trade war.
Joly pointed out that Canada supplies oil at a discount, which is primarily refined in Texas. She noted the reliance of American refineries on heavy oil grades from Canada and Venezuela, stating that there are no viable alternatives for those refineries. She mentioned that the current U.S. administration does not seek to collaborate with Venezuela, especially following sanctions imposed by Trump during his presidency.
Joly was in Washington to lead Canada’s efforts to prevent a full-scale trade war initiated by Trump’s tariff threats against Canada and Mexico, set to begin on February 1. While the president indicated he might exclude oil imports from these tariffs due to U.S. dependency on Canadian energy, she warned Congress that trade disputes would adversely impact workers, particularly in Republican states.
Both Canada and Mexico have prepared lists of retaliatory tariffs should the U.S. impose its own. Canada’s Energy Minister, Jonathan Wilkinson, has pledged “tit-for-tat” tariffs on American imports, including steel and orange juice, if the promised tariffs are instituted.
In recent weeks, Trump has criticized Canada and suggested that it should be considered as the U.S.’s 51st state. He insinuated that using “economic force” to annex Canada would be feasible. Joly dismissed these claims in her discussions with U.S. officials, affirming that Canada will not become a U.S. state or colony.
In response to Trump’s concerns over illegal drug and migrant crossings, Canada has been working to demonstrate its commitment to securing the shared border. Canada has promised to invest $1 billion in border security, which includes the deployment of additional patrol helicopters and drones, partly in reaction to the administration’s demands regarding illegal arms and migration.
Joly expressed concerns about the potential flow of illegal arms and migrants from the U.S. to Canada, especially in light of Trump’s threats to deport undocumented immigrants from the U.S. While acknowledging the connection between Trump’s tariff threats and border security, she remarked that both nations would analyze their overall trade relationship, including the North American trade deal established during Trump’s previous term.
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