HOUSTON — Speaking to the press after his main stage appearance at the CERAWeek energy conference in Houston, Alberta’s energy minister Brian Jean made sure to add that if Canada becomes the 51st state of the US, the Republicans will never be elected again.
His remarks come on the heels of Donald Trump announcing that Washington would increase its scheduled tariffs on Canada’s steel and aluminium to 50%, following Ontario’s move to slap a 25% tax on electricity exports to three US states. The US tariffs were set to go into effect today (March 12).
But Ontario’s premier, Doug Ford, has now halted those electricity tariffs on 1.5 million Americans across Minnesota, New York, and Michigan, nudging Trump’s trade advisor Peter Navarro to announce that Trump’s threatened tariff hike now won’t go ahead. And Ford himself is now headed to Washington on Thursday to meet Trump’s commerce secretary (Lutnick) following their reportedly ‘spicy’ phone call last week.
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As for Trump himself? He splashed a little kerosene on the flames with another tweet, arguing, “The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear.”
This intensifying Canada-US trade war is on full display here in Houston where major oil-producing Canadian province premiers and ministers are joining annual industry talks.
Ontario’s Doug Ford, for example, has reiterated he won’t “hesitate to increase this charge” (on electricity exports to the US) if the US strikes again. He’s also tried appealing to US business leaders, highlighting the tanking markets and plummeting consumer confidence as reasons why the private sector should urge Trump to change course. Similarly, Alberta’s Brian Jean has said you don’t do this to your best friend, adding that Alberta is already in talks with other allies such as Japan and South Korea to divert exports.
Meanwhile, lest you think this escalating feud is encouraging Canada’s provinces to rally around the country’s impending new prime minister and former central bank chief Mark Carney, the energy ministers here in Houston have been critical of Carney, arguing he doesn’t have a direct mandate and needs to call for elections.
As for Carney himself? He’s reiterated his government will keep its tariffs until Americans “make credible, reliable commitments to free and fair trade.”