Home · Health · Aug 26 archive
Trump says the US doesn’t need Canada. The economy says otherwise
Confirmed
Daniel Béland, a political science professor at McGill University, said Trump’s claim that the U.S. doesn't need Canada is “absolutely false,” citing U.S. reliance on Canadian oil and natural gas and deeply integrated industries such as autos.
But former Alberta Premier Jason Kenney said Canada should not rule out export taxes on oil, fuel or potash if Trump escalates further. Still, a majority in the country broadly back Ottawa's decision to drive a hard bargain against the Trump administration, and other Canadian political leaders have shown a united front.
He called potash used by U.S. farmers “one of the most powerful tools we have” and said Washington would have to turn to suppliers such as Russia if Canada redirected shipments. This costly survival economy has kept trade and production moving and allowed the state to meet its core obligations, but the war and blockade risk ending this functionality.
“They should be mindful that if they really want to escalate, it will not end well for the American economy two months before midterm elections,” he said. Carney noted on Saturday that Canada supplies the vast majority of US natural gas and electricity imports and about 60% of crude oil imports.
“This country desperately needs aluminum,” Trump said. Squeezing the US on energy is not in the current countermeasures, although various political officials have said explicitly it wasn't ruled out - and not all provincial premiers have been keen to use that leverage.
He said Saskatchewan is on track to supply about half the world’s potash and warned that taxing exports could cost Canadian jobs, raise fertilizer prices and push U.S. buyers toward suppliers such as Belarus. Ford, whose Ontario province is home to Canada's auto manufacturing industry, is open to how far the dispute could go and said that an "energy surcharge is on the table".
Polls suggest a majority of Canadians would be unhappy if his government went in the other direction and made significant concessions to the US. The distillers association reported similar numbers - saying provincial bans have caused exports of American spirits to drop by more than 70%.
Canada's Finance Department said additional measures to protect workers and businesses would be announced on Tuesday. Such retaliation “would affect Republicans who drive F-150s and lay fertilizer on their farm fields,” Kenney said.
What's confirmed
- Daniel Béland, a political science professor at McGill University, said Trump’s claim that the U.S.
- But former Alberta Premier Jason Kenney said Canada should not rule out export taxes on oil, fuel or potash if Trump escalates further.
- “They should be mindful that if they really want to escalate, it will not end well for the American economy two months before midterm elections,” he said.
- “This country desperately needs aluminum,” Trump said.
- He said Saskatchewan is on track to supply about half the world’s potash and warned that taxing exports could cost Canadian jobs, raise fertilizer prices and push U.S.
- Polls suggest a majority of Canadians would be unhappy if his government went in the other direction and made significant concessions to the US.
What's still developing
- “This country desperately needs aluminum,” Trump said.
- Daniel Béland, a political science professor at McGill University, said Trump’s claim that the U.S. doesn't need Canada is “absolutely false,” citing U.S. reliance on Canadian oil and natural gas and deeply…
- But former Alberta Premier Jason Kenney said Canada should not rule out export taxes on oil, fuel or potash if Trump escalates further.
- Such retaliation “would affect Republicans who drive F-150s and lay fertilizer on their farm fields,” Kenney said.
- “They should be mindful that if they really want to escalate, it will not end well for the American economy two months before midterm elections,” he said.
- He called potash used by U.S. farmers “one of the most powerful tools we have” and said Washington would have to turn to suppliers such as Russia if Canada redirected shipments.
- He said Saskatchewan is on track to supply about half the world’s potash and warned that taxing exports could cost Canadian jobs, raise fertilizer prices and push U.S. buyers toward suppliers such as Belarus.
- “This would be a tremendously flawed policy on behalf of Canadians,” Moe said.