Trump’s tariff threats are pushing the largest Canadian oil manufacturer to interrupt their US addiction

Houston – A deeply integrated oil and gas market in North America stands on Crossroads, and the largest Canadian oil producer warns that he will diversify his export away from the United States if the President Donald TrumpThe tariff threats do not end.

Prime Minister Albert Danielle Smith presented two possible futures for the continent on Wednesday. In one, Canada and the United States reaches the creation of a “fortress of North America”, with new pipeline capacities built 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 dominance” agent, “Smith said, allowing the US to increase exports to the global market, returning and barrels with imported oil from neighbors and close allies. She will maintain low consumer prices in the United States, she said, which is also part of the agenda that Trump has been campaigning.

Alberta wants to supply now the energy she needs to win in the race against China to achieve dominance in artificial intelligence, Smith said. “I don’t think none of us want to see a communist, totalitarian regime, becoming a world, a global leader in AI,” the Prime Minister said.

In the second future, Trump continues to wage his trade war against Canada, and Alberta begins to look for oil and gas buyers outside the US, Smith said.

Canada is the fourth the largest oil producer in the world, and Alberta is the largest manufacturer in the country. About 97% of 4 million BPD oil exports left Canadian energy regulator. Alberta delivered 87% of oil -exported from Canada to the United States in 2023.

“There are at least six or seven projects that appear in Canada in the event that we are not able to enter into a partnership 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 remove more barrels from our borders except the United States,” Energy Energy Energy Minister Brian Jean said on Tuesday.

Alberta is in active conversations with South Korea, Japan and European countries about the export of oil transfer to these countries, said the Energy Minister. “The truth is that we are currently looking in every direction except the United States in relation to our priorities,” Jean said.

Trump’s tariffs launched financial markets and caused confusion among investors over the past week. The President imposed 25% of tariffs on Wednesday Imports of steel and aluminum from Canada. He has Paused until April 2 Penalties on Canadian oil and gas, as well as duties on other goods that are in accordance with the trade agreement governed by North America.

Trump’s administration did not provide clarity by how much Canadian export to the US is in accordance with the trade agreement. Nafta and gas that are not in accordance with 10% tariff would face. US Energy Minister Chris Wright refused to provide details When asked on Monday from CNBC.

Smith said on Wednesday that Canadian oil manufacturers were busy with filling of paperwork to ensure that their exports to the United States are in harmony.

“There were few paperwork that had our companies,” Smith said. “There was no reason to register, and so it exists now. I would imagine that everyone called their lawyers and that they were in line. I would not expect our oil and gas at all tariff.”

But it is not clear whether Trump will continue with tariffs when his break expires on April 2. Wright said a contract with Canada on Monday who avoids oil tariffs, gas and other energy “is certainly possible”, but “it’s too early to say”.

“We can’t get to a tariff or a very low tariff, but it must be reciprocal,” Wright told CNBC interview Brian Sullivan.

It will take time to turn Alberta in markets outside the US if the tariffs take effect. Almost all pipelines in Canada run south in the US Canada have only one pipeline that extends from Albert to the western coast of the country in British Colombia, providing access to Asian markets. There are no pipelines moving from Albert to the east coast of the country.

Smith said that Canada observes three different proposals for pipelines on the west coast, at least one pipeline in the northwestern territory, one in Manitoba, one at the Hudson Bay and one in Eastern Canada.

“These are talks we didn’t have three months ago,” Jean said about pipelines. But it took Canada for 12 years to expand its trans -planning pipeline that connects to the western coast of the country.

Alberta is not interested in taking an Ontario book page, Jean said on Tuesday. Prime Minister Doug Ford imposed Supplements of 25% on electricity embroidered in the US in response to Trump’s tariff. Later suspended the sentence After the US agreed to continue the conversations.

“We do not believe that this is the right way to do so,” Jean said of Albert’s position. “We want to make a situation.”

Canada has now presented several options, said Energy Minister Albert. Jean refused to provide specifics, but said that Trump’s administration needed a strong strategic oil reserve to achieve its goal of energy dominance.

“This also means that they must be able to continue the good constant supply of products from Canada,” he said.

If the tariffs enter into force, they will harm the Canadians and Americans, especially people who cannot afford to increase the prices, he said. The price increase will be divided “quite even” between American customers and manufacturers in Canada, he said.

“It will feel it all parties and honestly, there are many people right now […] That can’t afford it, “he said.” We need to think about these people because they are less happy who really have no choice but to buy fuel. “

Jean moved Trump’s repeated calls for Canada to become 51.

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