After weeks of uncertainty, the Canadian energy sector received the news that had feared: the United States will soon begin to impose tariffs on Canadian imports of oil and gas.
On Friday, President Donald Trump said he would probably establish tariffs on oil and Canadian gas to 10 percent.
While that is less than what is originally feared, people who work in the Canada's energy industry say it is still significant and will have an impact on both sides of the border.
Experts say that despite tariffs, Americans still need the oil and gas in Canada because almost two thirds of American oil imports come from the north of the border and many of the refineries in the middle of the United States They are specifically designed to process a heavy Canadian crude.
“Those refineries depend a lot on Canadian crude. Then, 4 million barrels a day: it is one in four barrels used by US consumers such as gasoline and diesel. So, you know, the refineries will have to increase prices, ”said Richard Masson, a public policy professor at Calgary University.
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However, the highest prices, in turn, are expected to lead to lower demand.
“This will have a great blow to the Canadian economy,” said Gurpreet Lail, CEO of Desservation. “Tariffs will put tens of thousands of jobs at risk.”
The Canadian Association of Petroleum Producers warns if Canada responds to US tariffs by reducing energy exports to the United States, could leave Ontario and Quebec vulnerable because they depend on the imports of oil and gas in the United States.
The Canadian press/Graham Hughes
The Canadian Association of Petroleum Producers said that a commercial dispute with the USA could also put at risk other parts of Canada, particularly in Ontario and Quebec that depend on the US. UU. Alternative sources available.
CAPP warns in a statement that “this agency represents the risk that Canadian reprisal measures, such as export restrictions in US exports, can also lead to similar actions from the United States, resulting in energy shortages and prices higher for Canadians. “
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