Trump States in WEF Speech: “We Do Not Require Canadian Oil”
America can manage without Canadian oil and lumber, as stated by U.S. President Donald Trump at the World Economic Forum (WEF) in Davos.
During a forum session on Jan. 23, Trump mentioned, “We don’t need their oil and gas. We have more than anybody,” while addressing top international banking, finance, and oil industry CEOs.
Despite threats of tariffs from Trump, some Canadian officials have contemplated using energy exports as retaliation, a move strongly opposed by Alberta Premier Danielle Smith.
Since his election, Trump has warned of imposing 25 percent tariffs on Canada citing border security concerns.
Canadian officials are working to address the president’s border security worries, considering retaliation only as a last resort.
They are also underscoring the significance of trade integration between the two nations.
Trump appeared dismissive of this argument during his Davos address, stating, “We don’t need them to make our cars, and they make a lot of them.” The automotive supply chains between southern Ontario and Michigan are deeply interconnected.
Additionally, Trump mentioned that the U.S. does not rely on Canadian lumber as it has its own forests.
During a discussion on eliminating regulations and bureaucracy, Trump conveyed optimism about the U.S. economy in his potential second term, attributing this to “demanding respect from other nations.”
He referenced Canada, noting challenges in dealing with the country over the years and citing a significant deficit. Trump emphasized the need to rectify this deficit to avoid further tariffs and even suggested the possibility of Canada becoming a U.S. state.
An analysis by TD Bank revealed a potential merchandise trade surplus between Canada and the U.S., while other data sources indicate a deficit from the U.S. perspective.
Furthermore, Canadian energy exports to the U.S. are valued at nearly $170 billion, impacting trade balances significantly.
Prime Minister Justin Trudeau has indicated readiness to explore various options for retaliation, including leveraging energy exports against the U.S.