Canada has issued a strong warning to the United States, saying that President Donald Trump’s plan to impose high tariffs on Canadian goods could backfire. If the US disrupts trade with Canada, it may be forced to buy oil from Venezuela—a country with a troubled relationship with Washington.
Mélanie Joly, Canada’s Foreign Minister, visited Washington to discuss this issue with top US officials. She pointed out that Canada sells oil to the US at a lower price, and American refineries depend on it. If Canada stops supplying, the US would have no choice but to turn to Venezuela, which also produces similar types of heavy oil.
Venezuela is under strict US sanctions, which were first imposed during Trump’s previous term in office. The US government has long criticized the country’s leadership and has tried to limit its ability to do business. But with Canada out of the picture, Venezuela could end up filling the gap, leaving the US in an uncomfortable position.
Trump’s Bold 25% Tariffs on Canada and Mexico, Oil Exemption Still Uncertain
Trump’s 25% Tariff Threat Sparks Tension
President Trump has announced that he is considering imposing a 25% tariff on imports from Canada and Mexico, starting February 1. This means that Canadian goods entering the US would become more expensive, making trade between the two countries much harder.
In response, Canada has warned that this move would hurt both nations. Joly stressed that trade wars don’t just affect governments—they impact everyday people, including American workers. Many US states, especially those with refineries that rely on Canadian oil, could face higher costs and possible job losses.
Despite increasing oil production within the US, American refineries still need heavy crude oil from outside sources. Right now, Canada supplies about 60% of the oil the US imports. If Trump’s tariffs push Canada away, Venezuela could become the next big supplier, which would contradict the US government’s own policies against the country.
Canada and Mexico Ready to Fight Back
If the US moves forward with these tariffs, Canada and Mexico are prepared to hit back with their own trade penalties. Both countries have created lists of American goods that could face new taxes in return. Canada’s Energy Minister, Jonathan Wilkinson, has specifically mentioned that products like steel and orange juice from the US could be targeted.
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Canada is also making efforts to improve border security to address one of Trump’s biggest concerns—illegal immigration and the flow of drugs. Canada has pledged $1 billion to strengthen its border, deploying helicopters, drones, and extra patrol dogs. Joly mentioned that her government is working to stop the illegal flow of guns from the US into Canada, as well as preparing for the possible arrival of migrants being deported from the US.
During a speech earlier this month, Trump made controversial remarks about Canada, referring to Prime Minister Justin Trudeau as a “governor” and joking about making Canada the 51st US state. Joly dismissed this idea, stating firmly that Canada will always remain independent.
As tensions rise, both Canada and Mexico are hoping to avoid a full-scale trade war. Joly emphasized that Canada wants a “win-win” situation and is willing to work with the US to find a fair solution. However, if Trump follows through with his threats, Canada is ready to respond with its own economic measures.
