Politics

Former U.S. commerce secretary says he ‘can’t imagine’ Trump would tax Canadian energy

As the world anticipates the inauguration of U.S. president-elect Donald Trump in January, there is speculation about the potential implementation of a global tariff. However, Wilbur Ross, Trump’s former commerce secretary, believes that taxing Canadian energy would not be in the best interest of the United States. In an interview on Rosemary Barton Live, Ross expressed his doubts about Trump wanting to impose tariffs on Canadian energy, emphasizing that it would increase costs for Americans without creating more jobs.

Since Trump’s victory in the election, Canadian officials, provinces, and industries have been gearing up for his second term, which includes his campaign promise of a minimum 10 per cent global tariff. Despite not receiving any assurances from Trump allies prior to the election, Canadian officials are taking proactive measures to engage with the new U.S. administration.

Provinces like Ontario and Alberta, which would be heavily impacted by Trump’s proposed tariff, are already strategizing ways to influence the U.S. government. Ontario’s Minister of Economic Development, Vic Fedeli, announced plans for a marketing campaign in January to underscore the importance of bilateral trade with the U.S. Similarly, James Rajotte, Alberta’s representative to the United States, is working to ensure that American lawmakers understand the implications of imposing tariffs on the energy sector.

The Alberta oil and gas sector, which accounted for $127 billion in trade with the U.S. last year, is particularly vulnerable to the proposed tariff. With the U.S. being Alberta’s largest trading partner, there is a sense of urgency to address potential trade barriers.

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Kirsten Hillman, Canada’s ambassador to the United States, emphasized the need for substantive conversations with the U.S. regarding trade policies. She acknowledged Trump’s belief in tariffs as a policy tool but stressed the importance of demonstrating how such measures could harm U.S. jobs and revenue.

When asked about how Canada should approach Trump, Ross suggested that the country should focus on finding common ground and making concessions to strengthen the relationship. Despite past tensions between Trump and Prime Minister Justin Trudeau, Hillman described their relationship as warm and expressed confidence in their ability to work together effectively.

In a recent phone call, Trudeau congratulated Trump on his re-election and discussed trade and security issues. The conversation was reportedly positive, highlighting the ongoing efforts to maintain a productive relationship between the two countries.

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