Canada is considering imposing export duties on oil, uranium and potash fertilizers to persuade U.S. President-elect Donald Trump not to impose a 25% tariff on all Canadian goods, The Globe and Mail reported on Thursday, citing a senior Canadian government official.
According to the official, Ottawa is considering several retaliatory measures and is “not even close to choosing” which one to adopt. Reacting to media reports, Saskatchewan Provincial Governor Scott Moe said the possible export duties would be a “self-defeating response to U.S. tariffs.” “A significant portion of the economic damage will be directed at Saskatchewan because we produce all of the uranium and almost all of the potash in Canada, and we are a significant oil producer,” the governor wrote in X.
As the newspaper notes, a split is brewing in Canada’s ruling circles over possible retaliatory measures to the U.S. actions.
Canada exports about 60% of its oil to the United States, as well as 85% of its electricity. The United States, Mexico and Canada are bound by a trilateral agreement that would create a free trade zone between them. However, on November 25, Trump announced that on his first day in office he would impose 25% tariffs on all goods from Canada and Mexico due to illegal immigration and drug smuggling.