‘No one wins in a trade war’: Alberta energy experts responds to lower tariff
With both Canada and the United States set to implement tariffs on each other’s goods, there is some relief for Canada’s energy sector.
Many Canadian products will be slapped with a 25 per cent tariff on Tuesday. Industry experts say the lower 10 per cent tariff proves how Alberta’s oil and gas is crucial for both countries.
Scott Crockatt, vice-president of communications for the Business Council of Alberta, said the move by U.S. President Donald Trump was disappointing. However, he calls the decision to keep energy out of the 25 per cent penalty significant.
“No one wins in a trade war is the reality,” he explained. “The fact that the tariff is different on energy products than it is on the rest of the economy is meaningful because energy is the biggest portion of what we trade with the United States. And from an Alberta perspective – overwhelmingly,” he added.
Crockatt said it still isn’t clear how the tariff will impact the economy. He said he’s already hearing energy companies in Canada moving cautiously with investments and projects.
“The reality is this is going to cost tens of thousands of jobs in Canada,” he said.
Richard Masson, faculty member at the University of Calgary’s School of Public Policy, and former CEO of the Alberta Petroleum Market Commission, believes companies will start re-evaluating projects.
“I would be surprised if it doesn’t result in some companies saying, ‘I’m just not going to spend money in this environment.’ It’s too uncertain,” Masson explained.
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.
“It won’t happen on Tuesday. But over the course of the coming few weeks, we’ll start to see announcements like that.”
Masson expects to see higher gasoline and diesel prices in the U.S., but because the tariff for energy is only 10 per cent rather than 25, he does not anticipate demand will drop right away.
“What might have been 75 cents a gallon will be 25 cents a gallon. That probably doesn’t get U.S. consumers to change behaviour very much. If that’s the case, then demand for Canadian oil stays about the same,” he explained.
In a statement Saturday, Alberta Premier Danielle Smith expressed disappointment but said she would continue to oppose any effort to ban exports to the U.S. or tax Canadian goods travelling south of the border.
Smith partially credits her government with the reduced tariff rate.
“We’ve pointed out the substantial wealth created in the U.S. by American companies and tens of thousands of American workers who upgrade and refine approximately $100-billion of Canadian crude into $300-billion of product sold all over the world by those same U.S. companies,” she said.
“Alberta will also work collaboratively with the federal government and other provinces on a proportionate response to the imposed U.S. tariffs through the strategic use of Canadian import tariffs on U.S. goods that are more easily purchased from Canada and non-U.S. suppliers. This will minimize costs to Canadian consumers while creating maximum impact south of the border. All funds raised from such import tariffs should go directly to benefit the Canadians most harmed by the imposed U.S. tariffs,” her statement continued.
There are calls from the oil and gas sector to not restrict energy trade or impose an export tax.
During his address to the nation on Saturday regarding retaliatory tariffs, Prime Minister Justin Trudeau was asked whether blocking energy exports were fully off the table.
Trudeau said he would need full support from regional, provincial and business partners before doing so.
“Any conversations around further measures, particularly involving one industry and one region of the country more than another, is something we’ll do carefully and thoughtfully,” Trudeau stated.
“No one part of the country should be carrying a heavier burden than any other.”
© 2025 Global News, a division of Corus Entertainment Inc.