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Energy export issue divides premiers as they talk Trump tariffs

Federal government walks them through border plan, then moves on to retaliatory trade measures
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Ontario Premier Doug Ford arrives for a first ministers meeting in Ottawa on Wednesday, Jan.15, 2025. THE CANADIAN PRESS/Sean Kilpatrick

Ontario Premier Doug Ford urged his colleagues to put the country first as the premiers sat down with Prime Minister Justin Trudeau on Wednesday to hash out a response to U.S. president-elect Donald Trump and his threat to impose potentially devastating tariffs on Canada.

鈥淧art of being Team Canada means recognizing and respecting each other鈥檚 provinces and territories,鈥 Ford said. 鈥淏ut nothing is more important than the country.鈥

Trudeau opened the meeting in Ottawa pledging that Finance and Intergovernmental Affairs Minister Dominic LeBlanc will walk the premiers through the government鈥檚 鈥渕assive鈥 border plan.

鈥淚t features three main issues: first of all, the joint fight against illegal drugs, particularly fentanyl,鈥 Trudeau said, adding that this is one of the key issues for the incoming Trump administration.

The other two issues are the joint management of border security and 鈥渆nsuring the continued integrity of our immigration system,鈥 he said.

Trump initially said the 25 per cent tariffs were being imposed in response to drugs and illegal immigration crossing the shared border, but has since pivoted to citing the United States鈥 trade deficit with Canada.

The first ministers are set to turn their attention to potential responses to the tariffs in the second half of the meeting, Trudeau said, adding that the group has been united in standing up for the national interest.

The premiers are divided when it comes to how the country ought to respond, however.

Ford, in his opening remarks, said he鈥檚 a strong believer in retaliatory tariffs.

鈥淵ou can鈥檛 let someone hit you in the head with a sledgehammer without hitting them back twice as hard, in my opinion,鈥 he said.

Newfoundland and Labrador Premier Andrew Furey told reporters Wednesday morning that Canada should make sure the U.S. is aware of its critical reliance on Canadian energy but not pull back on those exports just yet.

Furey, whose province is an oil producer, said Canada must have a proportional response ready but should not play its hand too early by blocking or limiting energy exports to the U.S.

鈥淚 see energy as Canada鈥檚 queen in this game of chess,鈥 he said. 鈥淲e don鈥檛 need to expose our queen this early. The opposition needs to know that the queen exists but they don鈥檛 need to know what we鈥檙e going to do with the queen.鈥

Quebec Premier Francois Legault said Canada should have options prepared if Trump follows through on that threat, as most premiers expect he will.

Both Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith have rejected the idea of any measures that would affect Canada鈥檚 energy exports to the United States.

鈥淲hen you look at the pipeline system, how oil is actually transported into the U.S. and back to Canada 鈥 it would be very, very difficult and I think impossible operationally to even consider that,鈥 Moe said.

鈥淧olitically, it would be more divisive than anything this Liberal government enacted, in way of policies, in the last nine years.鈥

When asked about the idea of cutting off or limiting energy exports to the U.S., Manitoba Premier Wab Kinew said he doesn鈥檛 want to see actions taken that undermine national unity.

Kinew said Canada should carefully craft its response to the tariff threat.

鈥淭he party that is in a rush to conclude their negotiations typically gives up their leverage in the process. So, I understand there鈥檚 a lot of economic uncertainty right now, but we need a steady hand,鈥 he said.

Canada is the top supplier of foreign oil to the U.S. and accounts for about one-fifth of its oil supply.

Ford, currently the chair of the premiers鈥 association known as the Council of the Federation, showed up to the meeting sporting a blue baseball hat bearing the message 鈥淐anada is not for sale鈥 鈥 a reference to Trump鈥檚 repeated claims that he wants to annex Canada into the U.S. using 鈥渆conomic force.鈥

鈥淧resident Trump wants to devastate Canada,鈥 Ford said. 鈥淭hat鈥檚 unacceptable.鈥

Ford estimated that the tariffs could cost 500,000 jobs in Ontario alone.

Prince Edward Island Premier Dennis King recently concluded a tour of the northeastern United States to talk about exports from his province.

King said the threatened tariffs could cost his province 25 per cent of its GDP and upwards of 1,400 jobs.

鈥淲hen you come from a place like Prince Edward Island, that鈥檚 catastrophic,鈥 he said.

When asked about the prospect of Ottawa issuing bailouts to help provinces with the tariff threat, King said nothing can be ruled out.

鈥淎ll options have to be on the table, and they are, but I do think that if there are countermeasures that they put in place, then all that money should be dispersed across the country to help provinces and help companies react,鈥 King said.

Alberta Premier Danielle Smith met with Trump at his Mar-a-Lago resort over the weekend. She was attending the meeting Wednesday virtually, as was British Columbia Premier David Eby.

Trump and his allies have been peppering Canada with taunts about making it the 51st state since Trudeau and LeBlanc made their own trip to Mar-a-Lago.

Kinew said Canada needs to pass the 鈥渓ocker room test鈥 in these negotiations.

鈥淔ifty-first state, you鈥檝e got to chirp back. Where are our chirps? This is not just a trade war, this is also a meme war. And have we been showing that ability to chirp back? I don鈥檛 know,鈥 he said.





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