President-elect Trump has threatened the European Union with tariffs unless it significantly increases its purchases of American oil and gas, citing a large trade deficit. This threat follows Trump’s first post-election trip abroad, and comes as the EU has strengthened its trade defenses against such coercive practices. The EU is already a major importer of US LNG and crude oil, but Trump’s “America First” approach signals potential significant trade disruptions. His past actions involving tariffs on steel and aluminum demonstrate his willingness to pursue protectionist policies. The EU has vowed a unified response to any aggressive trade actions from the incoming US administration.
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Ontario Premier Doug Ford advocates for Canada and the U.S. to collaborate against China’s economic influence, particularly its use of Mexico as a backdoor for circumventing trade rules. He prefers this collaborative approach to a damaging trade war, despite acknowledging energy export restrictions as a potential retaliatory measure against U.S. tariffs. Ford urges Mexico to choose sides, aligning with the U.S. and Canada rather than China, emphasizing the detrimental impact of cheap Chinese goods entering North America via Mexico. He highlights the potential for significantly increased gas prices should tariffs be imposed on Canadian energy exports.
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In response to President-elect Trump’s threatened 25% tariff on all Canadian goods, Ontario Premier Doug Ford threatened to cut off energy exports to the United States. This drastic measure, discussed amongst Canadian premiers and Prime Minister Trudeau, stems from concerns that the tariffs would devastate the Canadian economy and harm American consumers. While the extent of energy cut-offs remains unclear, the move underscores Canada’s resolve to retaliate against what is seen as an unjustified economic attack. Canada’s significant energy exports to the U.S. make this a powerful potential countermeasure.
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John Q. Hosedrinker