Varcoe: Don't do anything 'dumb': Using energy as weapon in trade war should be a 'non-starter,' says Smith
It’s a non-starter and would hurt Canadians, says Premier Danielle Smith.
As a trade battle between Canada and the United States enters a new phase, Smith spoke for about a half-hour with Ontario’s Doug Ford on Monday to discuss ways to work together.
Varcoe: Don't do anything 'dumb': Using energy as weapon in trade war should be a 'non-starter,' says Smith Back to video
But the “non-starter” for Alberta’s premier is using energy as a weapon in the clash, such as threatening to reduce supplies or place export levies on oil and natural gas headed to the U.S.
In an interview on Tuesday, Smith noted large volumes of Canadian crude move into Ontario via pipeline through Michigan and Wisconsin, making it vulnerable to American trade action. Ontario also consumes natural gas imported from the U.S.
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“If you start talking about cutting that off or tariffing it, well, the Americans actually have a greater stick,” Smith said.
“You can just imagine if we put 50 per cent tariffs on oil and gas leaving Canada, they would put 50 per cent tariffs or more on oil and gas leaving the United States into Canada. And so that would be a wipeout of the Ontario and Quebec economies,” she added.
“I don’t want to do anything that is going to result in a retaliation that would be crippling to Eastern Canada, and crippling to consumers........
