Canadian Prime Minister Mark Carney. Image: Official photo.
(Bloomberg) – Prime Minister Mark Carney rejected the notion that Canada should curb the supply of vital resources to the U.S. to retaliate against tariffs, arguing that it’s more important for the country to keep its reputation as a dependable producer.
“Being a reliable supplier is important,” Carney told reporters Wednesday in response to a question about the trade war. “People trust us. And so when you’re a supplier of a key commodity, key service, you’ve got to think really hard about not supplying.”
Under former Prime Minister Justin Trudeau, Canadian officials examined the possibility ofusing export taxeson key commodities such as oil, uranium and potash to drive up US costs in response to President Donald Trump’s trade policy.
Some provincial officials have pointed out that Canada isby far America’s largest foreign source of oil, making fuel a potential point of leverage in contentious trade negotiations.
Tensions between the U.S. and Canada ratcheted up again this month when Trump threatenedto slap 50% import taxes on a range of Canadian-made goods if Carney’s government fails to address American trade complaints about autos, alcohol and dairy.
But Carney, who was visiting Canada’s oil heartland of Alberta, appeared to rule out any use of export curbs or taxes on key resources.
“I don’t see the value of it,” he said when asked about using oil as retaliation, stressing that Canada is known as a “reliable” oil producer. “There’s other things we can do if we need it, to address the situation,” he said.
The latest threat from Trump and his officials would see new tariffs on products such as milk, hockey equipment, beer and plywood—but not on commodities like oil and potash that the U.S. buys from Canada in large quantities.
Canadian trade officials are in Washington this week to hold talks with their U.S. counterparts, and Carney has said his government’s primary aim is to reach a comprehensive agreementthat benefits both countries.
But he’s also said “all options” are on the table for Canada’s response if the White House goes ahead with more levies, a comment that appeared to open the door to retaliatory measures.
Trump has set a deadline of Aug. 19 before the new tariffs would kick in.
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