Trump’s tariff threats are pushing for the largest oil producer in Canada to break their dependence on the United States

Houston – A deeply integrated oil and gas market in North America stands on CrossRoads, and the largest oil producer in Canada warns that he will diversify his exports in the US if the president is when the president Donald TrumpTariffs do not end.

Albert Prime Minister Daniel Smith presented two possible futures for the continent on Wednesday. In one, Canada and the United States reach the North American Fortress Agreement with a new pipeline capacity to support 2 million barrels a day in additional exports to the US market, Smith said at the Ceraweek Energy Conference.

This will support Trump’s “energy domination” agenda, Smith said that the US will increase its exports to the global market, filling these barrels with imported oil into a neighbor and closed ally. According to her, she will support low consumer prices, which is also part of the agenda of Trump.

Smith said Alberto wants to supply the United States the energy she needs to win the race against China to achieve domination in artificial intelligence. “I do not think that one of us wants to see the communist, totalitarian regime, the world leader in the II,” said the Prime Minister.

In another future, Trump continues to wage his trade war against Canada, and Albert is starting to look for oil and gas customers outside the United States, Smith said.

Canada is the fourth largest oil producer in the world, and Albert is the largest manufacturer of the country. About 97% of the 4 million BPD in the country in 2023 went to the US, and several European countries and Hong Kong, which took the rest, reports, reports, Canada’s energy regulator. Albert supplied 87% of oil exported from Canada to the United States in 2023.

“There are at least six projects that arise in Canada in case we are unable to come to the US agreement with the US,” Smith said.

The uncertainty caused by Trump’s tariff threats has already forced Albert to start, “looking at more opportunities to get more barrels from our borders except the US,” Brian Jean’s Energy Minister said on Tuesday.

Alberto is actively discussed with South Korea, Japan and European countries about delivering oil exports to these countries, Energy Minister said. “The truth is that we are now looking for any way except the US against our priorities,” Jean said.

Over the past week, Trump’s tariffs launched financial markets and caused confusion among investors. President on Wednesday introduced 25% tariffs on Import steel and aluminum From Canada. He has paused before April 2 Fines on Canadian oil and gas, as well as duties on other goods that are in line with the trade agreement governing North America.

The Trump administration has not provided the clarity of how much Canada’s energy in the US corresponds to trade agreements. Oil and gas that do not meet compatibility will face the tariff by 10%. US Energy Minister Chris Wright refused to provide details Asked on Monday from CNBC.

Smith said on Wednesday that Canadian oil producers are busy filling out the documents to ensure that their exports to the US meets the requirements.

“There was a bit of documents that were in our companies,” Smith said. “There was no reason to register, and so now there is. I would imagine that they all called their lawyers and they meet the requirements. I would not expect our oil and gas at all.”

But it is unclear whether Trump will start the tariffs when it ended on April 2. Wright said on Monday with an agreement with Canada, which avoids oil, gas and other energy tariffs, “definitely possible” but “early to speak”.

“We can get to tariffs and very low tariffs, but it must be mutual,” Wright said in an interview with CNBC’s Brian Sullivan.

It will take time for Albert to turn into markets outside the United States when the tariffs take effect. Almost all pipelines in Canada work south in the United States, only one pipeline that stretches from Albert to the west coast of the country in British Colombia, which provides access to Asian markets. There are no pipelines coming from Albert to the east coast of the country.

Smith said Canada was considering three different proposals on the west coast, at least one pipeline to the north -western territories, one in a monitob, one in the Hadson Bay and one to eastern Canada.

“These are the conversations we didn’t have three months ago,” Jean said of the pipelines. But Canada took 12 years to expand its Trans Mountain pipeline, which is connected to the west coast of the country.

Gene said Albert was not interested in taking an Ontario’s book. The Prime Doug Ford has imposed 25% Electricity Payment exported to the US in response to Trump tariffs. He later suspended punishment After the US agreed to resume negotiations.

“We don’t believe this is the right way to do this,” Jean said of Alberta. “We want to decorate the situation.”

Canada has presented several options, Energy Minister Albert said. Jean refused to provide specifics, but he said that Trump administration requires a strong strategic oil reserve to achieve his goal of energy domination.

“It also means that they should be able to continue to receive good permanent supply from Canada,” he said.

When tariffs come into force, they will damage both Canadians and Americans, especially people who cannot afford rising prices, he said. The price increase will be broken “rather evenly” between US customers and manufacturers in Canada, he said.

“It will be felt by all parties, and frankly, there are many people now (…) who cannot afford it,” he said. “We need to think about these people because they are less fortunate that there is really no way to buy fuel.”

Jean held Trump on repeated calls for Canada to become a 51st state.

“As long as we answer, we don’t mind,” Jean said. “But the truth is that Republicans will never be chosen again.”