Canada knocks Trump’s claims of resource independence

Canada’s minister of energy and natural resources, Jonathan Wilkinson, has pushed back against U.S. president-elect Donald Trump’s recent claim that America doesn’t need anything from its northern neighbour as “simply false.”

Wilkinson, who is speculated to be a contender to succeed Justin Trudeau as Prime Minister, highlighted Canada’s critical role as a supplier of resources the U.S. lacks feasible alternatives for, including oil, uranium, potash and critical minerals.

During a TV interview, the minister noted that U.S. refineries, particularly in the Midwest, rely on Canadian heavy crude oil. Alternatives, like Venezuelan crude, present logistical and geopolitical hurdles, while critical minerals and uranium from Canada fill gaps that would otherwise leave the U.S. dependent on China or Russia.

Canada also supplies potash, a key ingredient for American agriculture, and hydropower to states like New York and Massachusetts. Wilkinson described the deep interdependence of the two nations’ economies.

He emphasized the critical role of Canada’s resources in supporting the U.S. energy and defence. American nuclear plants rely heavily on Canadian uranium, and the U.S. Department of Defense has invested in Canadian projects to secure alternatives to Chinese supplies of critical minerals, including cobalt and graphite.

Wilkinson also revealed that Canada is prepared to take strong retaliatory measures if the U.S. imposes tariffs, including an export tax on Canadian energy or targeted levies on American goods.

Ready to act

According to reports from CBC News, a list is circulating among Canadian officials that includes America-made goods that could be targeted by retaliatory levies. Items like US steel products, ceramics, and even Florida orange juice are reportedly being considered for these measures.

Canada intends to use the list to inflict pain across the U.S. to ensure pressure is put on Trump to withdraw any tariffs he may levy, Wilkinson said.

Trump has floated the idea of imposing 25% tariffs on goods from Mexico and Canada, citing trade imbalances. Media reports have suggested he may exclude commodities like oil and uranium and target manufacturing industries instead. Sectors such as auto manufacturing, aerospace, and aluminum — concentrated in Ontario and Quebec, where the majority of Canadians live — are seen as more vulnerable to tariffs.

Despite Parliament being suspended until March 24 following Trudeau’s announcement of his impending resignation, the federal government retains the authority to impose retaliatory duties without new legislation. This approach was used during in 2018, during Trump’s fist term in office, in a trade spat over steel and aluminum tariffs.