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Carney Rules Out Using Energy Exports to Counter U.S. 50% Tariffs

Preserving Canada’s reputation as a reliable supplier is his priority during negotiations in Washington to avert the tariffs.

Overview

  • Prime Minister Mark Carney said on Wednesday that he would not restrict energy supplies to the United States because trust and reliability matter for Canada’s long‑term trade ties.
  • Canada’s chief negotiator Janice Charette and Trade Minister Dominic LeBlanc are in Washington pursuing a deal to forestall the 50 percent U.S. duties.
  • The White House announced duties that take effect on Aug. 19 and would apply 50 percent tariffs to roughly US$20 billion of Canadian exports on top of existing steel, auto and aluminum levies.
  • Provincial leaders are split over tactics with some urging tougher measures while Ottawa is favouring measured restraint, contingency supports for affected firms and behind‑the‑scenes diplomacy.
  • Business groups and economists warn that using energy as a bargaining chip could destabilize integrated North American supply chains and that Ottawa is looking at market diversification and targeted help as second‑order responses.