Canadian Energy Industry Unites to Fight Potential Tariffs from US

Five of Canada’s largest energy-focused industry associations have joined forces to combat the threat of a 25% tariff on all Canadian goods proposed by incoming U.S. President, Donald Trump.

The Canadian Association of Petroleum Producers (CAPP), Pathways Alliance, Enserva, the Explorers and Producers Association of Canada (EPAC), and the Canadian Association of Energy Contractors (CAOEC) have established a joint working group to support efforts aimed at preventing tariffs on Canadian oil and natural gas exports to the United States. They are also preparing to address any potential impacts should these tariffs come into effect.

Canada’s oil and natural gas sector plays a crucial role in the country’s economy, representing 25% of all exports and approximately $150 billion in energy trade with the United States annually.

The collaborative effort of these industry associations represents over three-quarters of Canadian oil and natural gas production, along with numerous businesses that form a significant part of the energy industry’s supply chain.

Protecting a Long-Standing Partnership

According to Lisa Baiton, CAPP President & CEO, the trade relationship between Canada and the U.S. in oil and natural gas has a rich history dating back 130 years. The seamless operation of member companies across the border and interconnected infrastructure have been instrumental in providing reliable and affordable energy to both nations. Baiton emphasized the importance of safeguarding this partnership while also advocating for diversifying Canada’s global customer base to ensure economic resilience.

Kendall Dilling, President of Pathways Alliance, Enserva, highlighted the significance of Canada’s oil sands in North American energy security. Dilling stressed the need to strengthen, rather than weaken, the longstanding trade ties between the two countries, underscoring that Canadian sources accounted for over half of petroleum imports into the U.S. in 2023.

Preserving Energy Security and Economic Prosperity

Gurpreet Lail, President & CEO of Enserva, emphasized the pivotal role of the energy services, supply, and manufacturing sector in driving innovation, creating jobs, and enabling trade between the U.S. and Canada. Lail expressed concerns that proposed tariffs could jeopardize the energy security and economic prosperity of both nations, calling for collaborative efforts to address the challenge.

Tristan Goodman, President & CEO of EPAC, emphasized the integrated nature of North America’s oil and natural gas market in supporting the economies and energy security of both countries. Goodman stressed the importance of working with Canadian governments to prevent tariff implementation and urged a reevaluation of policies that could harm the sector’s economic well-being.

Mark Scholz, President & CEO of CAOEC, highlighted the longstanding partnership between Canada and the U.S. in energy trade, underscoring the mutual economic benefits and security it provides. Scholz warned that imposing tariffs could negatively impact American consumers and energy security interests, emphasizing the readiness of Canada to assist in addressing energy affordability concerns.

As the energy industry braces for potential tariff threats, the united front presented by these industry associations underscores the importance of collaboration in safeguarding economic interests and fostering energy security between Canada and the United States.