{"id":55790,"date":"2025-02-03T14:13:41","date_gmt":"2025-02-03T14:13:41","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/02\/03\/a-10-tariff-on-canadian-energy-is-coming-what-now\/"},"modified":"2025-02-03T14:13:41","modified_gmt":"2025-02-03T14:13:41","slug":"a-10-tariff-on-canadian-energy-is-coming-what-now","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/02\/03\/a-10-tariff-on-canadian-energy-is-coming-what-now\/","title":{"rendered":"A 10% tariff on Canadian energy is coming. What now?"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">Commodities<\/li>\n<li class=\"breadcrumbs__item\">Energy<\/li>\n<li class=\"breadcrumbs__item\">Oil &amp; Gas<\/li>\n<li class=\"breadcrumbs__item\">News<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">The levy will hurt energy companies, but few expect it to crater demand for Canadian crude<\/p>\n<div class=\"callout callout--noindent flex-align-center flex-justify-between\" data-evt-val=\"{\" control_fields=\"\" data-evt=\"visible\" data-evt-typ=\"element_view\"><span class=\"callout__text\"> Get the latest from Meghan Potkins straight to your inbox <\/span><button class=\"button button--icon button--primary-alt\" data-id-login-redirect=\"https:\/\/financialpost.com\/author\/mpotkinspostmedia-com\/newsletters\/\" type=\"button\"><span class=\"button__text\">Sign Up<\/span> <span aria-hidden=\"true\" class=\"button__icon\"> <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 11 11\" width=\"11\"><polygon points=\"1.1 0 7 6 1.1 12 0 10.9 4.8 6 0 1.1\"\/><\/svg> <\/span><\/button><\/div>\n<div class=\"article-meta\">\n<p><span class=\"published-date__since\">Published Feb 03, 2025<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">Last updated 13\u00a0hours ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">6 minute read<\/span><\/p>\n<div class=\"article-meta__bottom\">\n<div class=\"bookmark-wrapper\">\n<div class=\"popover\" data-aqa=\"popover\" data-click-to-appear=\"True\" data-container=\"\" data-container-offset=\"\" data-no-style=\"\" data-popover-component=\"\" data-position=\"top\" data-sticky=\"\" data-tail-offset=\"200\" data-tail-position=\"right\"><button class=\"popover__trigger bookmark-button\"><span class=\"save-article-button save-article-button--default\" title=\"Save article\" data-article-id=\"8b22f3c5-e7bc-4437-a79a-4772d72a8d48\" data-evt-skip-click=\"true\"\/><\/button><\/p>\n<div aria-describedby=\"popover-desc-popover-bookmark\" class=\"popover__content\" hidden=\"\" role=\"dialog\">\n<div class=\"popover__content__wrapper\">\n<div class=\"popover__content__text\" id=\"popover-desc-popover-bookmark\">\n<div class=\"bookmark__popover__content\">\n<p>You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<p><button class=\"popover__content__close\" data-evt-skip-click=\"true\" title=\"Close\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewbox=\"0 0 12 12\" class=\"icon--close\" height=\"12\" version=\"1.1\" width=\"12\"><polygon points=\"12 0.95 11.05 0 6 5.05 0.95 0 0 0.95 5.05 6 0 11.05 0.95 12 6 6.95 11.05 12 12 11.05 6.95 6\"\/><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">The U.S. tariff on Canadian energy includes a broad range of products. Trump&#8217;s executive order refers to crude oil, natural gas, condensate, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, hydroelectricity and critical minerals.<\/span> <span class=\"credit\">Photo by THE CANADIAN PRESS\/Jeff McIntosh<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">There is a kind of joyless vindication in Canada\u2019s oilpatch at United States President Donald Trump\u2018s decision to single out Canadian energy for a reduced 10 per cent tariff while other products are hit with a 25 per cent levy.<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>\u201cThe fact that he went to 10 per cent on energy means that people have finally been able to get to him and explain how important it is,\u201d Richard Masson, former chief executive of the Alberta Petroleum Marketing Commission, said amid uncertainty about a potential trade war. \u201cThere\u2019s an admission of their dependence and that\u2019s a good thing.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment2143387250900840911977620539703296\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" 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continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account.<\/li>\n<li>Share your thoughts and join the conversation in the comments.<\/li>\n<li>Enjoy additional articles per month.<\/li>\n<li>Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__registration_only hidden\">\n<p>THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account<\/li>\n<li>Share your thoughts and join the conversation in the comments<\/li>\n<li>Enjoy additional articles per month<\/li>\n<li>Get email updates from your favourite authors<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n<div class=\"identity-screen m-x-0 p-x-0 col-xs-12 col-md-6 flex-justify-center flex-align-center\" aria-live=\"assertive\">\n<section class=\"sail\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-sailthru-personalization-engine=\"\" data-sailthru-personalization-engine-component=\"\"\/>\n<div class=\"m-x-0 p-x-0 col-xs-12 col-sm-6 col-md-12 flex-align-justify-center\" data-auth-component=\"\" id=\"auth-screen-form\">\n<div class=\"identity-screen-form--active w-full flex-align-justify-center\">\n<div class=\"identity-screen-form identity-screen__content w-full\">\n<h2 class=\"blocker-title\">Sign In or Create an Account<\/h2>\n<p><span class=\"identity-divider__line\"\/><span class=\"identity-divider__text\">or<\/span><span class=\"identity-divider__line\"\/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<footer class=\"identity-footer identity-screen__content m-x-0 p-x-0 col-sm-6 col-md-12\"\/><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>The tariff will hurt Canadian energy companies, disrupt commodity flows and raise costs for U.S. consumers and refiners, according to experts, but few expect it to crater demand for Canadian crude or trigger production shut-ins.<\/p>\n<p data-async=\"\">\u201cA 10 per cent tariff would imply a $4 to $6 per-barrel levy and (a price discount on Canadian heavy oil) of $15 to $16,\u201d RBC Capital Markets analyst Greg Pardy said in a research note on Sunday, based on a price of US$71 for benchmark U.S. West Texas Intermediate (WTI).<\/p>\n<p>But key questions remain on how the tariff will be applied, including whether Canadian barrels going through the U.S. to Ontario, or to the U.S. Gulf Coast for re-export, will be hit.<\/p>\n<p>There are also lingering fears over how energy could be leveraged in future retaliations by Ottawa.<\/p>\n<p>\u201cWith this (U.S.) administration, we\u2019re not exactly sure what we\u2019re going to get until it actually gets implemented,\u201d Tristan Goodman, president of the Explorers and Producers Association of Canada, said. \u201cThe U.S. administration has been very clear they will respond to a retaliation. This could get pretty out of hand, pretty quickly.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment3118846529760540413132930459631616\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">The U.S. tariff on Canadian energy includes a broad range of products. Trump\u2019s executive order refers to crude oil, natural gas, condensate, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, hydroelectricity and critical minerals.<\/p>\n<p>In the short term, Canadian oil producers will undoubtedly turn to the country\u2019s only export pipeline not directly tied to U.S. markets.<\/p>\n<p data-async=\"\">The expanded Trans Mountain pipeline (TMX) currently has contracts taking up about 80 per cent of its daily 890,000-barrel capacity to carry crude to tankers on the British Columbia coast.<\/p>\n<p>Higher pipeline tolls on TMX, due to the project\u2019s massive cost overruns, had previously meant shipping was cheaper on rival Enbridge Inc.\u2019s Mainline pipeline.<\/p>\n<p>\u201cWhat happens on Tuesday, presumably, is that other 150,000-plus barrels a day fills up. Bang,\u201d Masson said.<\/p>\n<p>But there are other factors beyond TMX that could determine how Canadian oil and gas weather a trade war.<\/p>\n<p>For example, the Canadian dollar has been weak in recent months and could fall further in response to Trump\u2019s tariffs.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot31 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page fp-execsummary background--primary-light-gradient\" aria-labelledby=\"FinancialPostPosthaste1182205557494868583816108263342080\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_ExecSummary\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 75w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 100w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 150w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 240w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 320w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 500w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 640w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 800w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 1024w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 1280w, https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg 1600w\" alt=\"Posthaste\" loading=\"lazy\" fifu-data-src=\"https:\/\/dcs-static.gprod.postmedia.digital\/17.9.6\/websites\/images\/newsletters\/icon-fp-posthaste.svg\"\/><\/div>\n<div>\n<p>Posthaste<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_ExecSummary\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Posthaste will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_ExecSummary\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment2763339247462046721199852432130048\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>A depreciating loonie tends to help the profitability of Canadian producers who sell their products in U.S. dollars and pay expenses in Canadian dollars.<\/p>\n<p>Though U.S. importers pay the 10 per cent tariff, producers will bear a portion of the cost through price discounts on Canadian crude. Canada\u2019s benchmark Western Canadian Select (WCS) was already trading at US$16.25 a barrel less than WTI late on Friday in anticipation of the new tariffs, Pardy said.<\/p>\n<p>However, in cases where U.S. buyers or refiners can demand lower prices for Canadian supplies because of the availability of substitutes, a weaker loonie could play a significant role in offsetting the tariff burden on Canadian companies.<\/p>\n<p>The exchange rate is the second-most important factor after commodity prices in determining the downside to the cash flows and stock prices of Canadian oil companies from the Trump tariffs, ATB Capital Markets analyst Patrick O\u2019Rourke said in a recent research note. The Canadian dollar acts as a shock absorber for the tariffs when it goes down in value, he said.<\/p>\n<p>Integrated producers, such as Cenovus Energy Inc., Imperial Oil Ltd. and Suncor Energy Inc., with downstream refining assets, could outperform their peers, he said, by recouping some of the lost margins through refining and product sales.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_5\">\n<section aria-describedby=\"advertisment7021183870186643888260700237201408\" class=\"ad\">\n<p>Advertisement 5<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-5\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"5\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-5\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>Imperial chief executive Brad Corson on Friday said the company was acquiring light crudes to meet its refinery runs.<\/p>\n<p>\u201cWe obviously produce a heavy crude,\u201d he said. \u201cIf heavy crudes are impacted negatively \u2026 we would expect to see some offset of that with the light crudes that we\u2019re running in our refineries. The strength of integration makes us much more resilient than others.\u201d<\/p>\n<p data-async=\"\">Conversely, pure-play Canadian heavy oil producers are likely to feel the pressure first, including companies such as Athabasca Oil Corp., Canadian Natural Resources Ltd. and Meg Energy Corp.<\/p>\n<p>\u201cSome of our most oily producers will be very exposed,\u201d O\u2019Rourke said.<\/p>\n<p>Another question gripping the sector is whether the new U.S. tariffs will apply to barrels originating in Canada that transit through the U.S. for re-export.<\/p>\n<p>The Trump tariffs have highlighted Canada\u2019s vulnerability on U.S. pipelines, since oil and gas extracted in the West cannot be directly shipped by pipeline to refineries in Ontario, Quebec and beyond.<\/p>\n<p>For example, Enbridge\u2019s Line 5 carries Canadian crude through Wisconsin and Michigan, with stopovers to feed U.S. refineries, before re-entering Canada in Sarnia, Ont.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_6\">\n<section aria-describedby=\"advertisment9679086906892830998276259752968192\" class=\"ad\">\n<p>Advertisement 6<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-6\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"6\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-6\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>Some are wondering if the Canadian crude that transits Line 5, as well as a segment of Line 78, both terminating in Sarnia, could face tariffs, which will raise fuel prices in Ontario.<\/p>\n<p>Trump\u2019s tariff has also galvanized interest in boosting Canadian crude shipments to the U.S. Gulf Coast for re-export to overseas buyers, but proponents are uncertain whether those barrels would face U.S. tariffs.<\/p>\n<p>Roughly 200,000 barrels a day of Canadian heavy crude oil are currently re-exported from the Gulf Coast and there have been calls to increase those volumes since the tariff was announced.<\/p>\n<p>Ordinarily, Masson said, the economics tend to favour a flow of Canadian barrels to big U.S. refineries on the Gulf Coast.<\/p>\n<p>\u201cIn order for you to put it on a ship and ship it somewhere, probably Europe, you need to be getting a heck of a price compared to the U.S. price,\u201d he said. \u201cBut if the $6 unique to the U.S. tariff goes on, that trade would look a lot better.\u201d<\/p>\n<p>Trade experts and analysts have pointed to U.S. duty and duty deferral programs that allow importers to seek a deferral, refund, reduction or waiver of customs duties that were paid on goods that are re-exported from the U.S.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_7\">\n<section aria-describedby=\"advertisment7800788992983305289993527763140608\" class=\"ad\">\n<p>Advertisement 7<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-7\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"7\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-7\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>Canada could also once again look at invoking a decades-old pipeline treaty if the U.S. elects to apply tariffs on barrels transiting the country for re-export, according to some industry experts. Canada invoked the treaty in 2021 after Michigan Governor Gretchen Whitmer attempted to shut down Enbridge\u2019s Line 5 over spill concerns.<\/p>\n<p data-async=\"\">The 1977 treaty prohibits imposing duties on the use of transit pipelines, as well as any import or export taxes on transiting hydrocarbons.<\/p>\n<p>\u201cThe reality is that there\u2019s still a lot of mud in the water at the moment about how exactly these tariffs will work, how the retaliation might work (and) how secondary retaliation from the United States may work,\u201d Scott Crockett with the Business Council of Alberta said.<\/p>\n<p>He points out Trump\u2019s executive order essentially says to Canada, \u201cIf you retaliate, things could get even worse on you.\u201d<\/p>\n<p data-async=\"\">Even before the details were announced, Trump\u2019s threats had resulted in calls to diversify away from the U.S. Both Natural Resources Minister Jonathan Wilkinson and B.C. Premier David Eby made separate public comments over the weekend about the importance of faster approvals for major projects.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_8\">\n<section aria-describedby=\"advertisment2802430795767144222854422661693440\" class=\"ad\">\n<p>Advertisement 8<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-8\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"8\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-8\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>In a news conference, Eby said the province had identified 10 private-sector projects worth $20 billion to expedite, including mines, renewable energy and natural gas, and that his government is committed to fast-tracking approvals and permits to get them underway.<\/p>\n<p>Wilkinson told Bloomberg there is a \u201crenewed emphasis\u201d on finding a way to double the capacity of LNG Canada, the country\u2019s first natural gas export project in Kitimat, B.C., that will start shipping fuel to Asian markets this year.<\/p>\n<section aria-labelledby=\"moreTopicLabel2940968978910895084851748008886272\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended from Editorial<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li data-evt-val=\"{\" control_fields=\"\" tariffs=\"\" rattle=\"\" alberta=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Alberta Premier Danielle Smith visited U.S. President-elect Donald Trump at his West Palm Beach Mar-a-Lago resort and his golf club earlier this month\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=80&sig=oXq8x1a65jl4_-XW9epX2Q\" fifu-data-src=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=5&sig=aT1AKiwfTXxScE6as9qcLQ&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=96&strip=all&quality=80&sig=oXq8x1a65jl4_-XW9epX2Q, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=192&strip=all&quality=80&sig=MO0qptUe2mMKSKtp3Sv6Uw 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/ghhc4kfa4aivh49.jpg?h=288&strip=all&quality=80&sig=k2aali-QDJ5BORwNHtxTxQ 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Trump&#8217;s tariffs rattle Alberta<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" to=\"\" place=\"\" tariffs=\"\" on=\"\" billion=\"\" in=\"\" u.s.=\"\" goods=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Prime Minster Justin Trudeau, right, revealed the retaliatory measures late Saturday evening, after U.S. President Donald Trump, left, signed executive orders imposing a 25 per cent levy on all Canadian goods and 10 per cent on Canadian energy.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=80&sig=vWgVyeVkEXhR3bHh3aGAuQ\" fifu-data-src=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=5&sig=-h1aWDASyDHKUbXgiLhByg&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=96&strip=all&quality=80&sig=vWgVyeVkEXhR3bHh3aGAuQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=192&strip=all&quality=80&sig=8ggqDl8D9BaVsH4mjapixg 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/trump-trudeau-0203-ph.jpg?h=288&strip=all&quality=80&sig=1SozK5zgTBGune-MAIuDnA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Canada to place 25% tariffs on $155 billion in U.S. goods<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p data-async=\"\">Strathcona Resources Ltd. chief executive Adam Waterous said Canada could declare an energy emergency to streamline regulatory approvals for pipeline projects carrying energy to ports on Canada\u2019s West and East coasts.<\/p>\n<p>\u201cAssemble private-sector consortiums to build the pipelines and set deadlines to complete the pipelines well before Trump\u2019s term in office ends,\u201d he said. \u201cTrump thinks he\u2019s Superman, but Canada can turn its oil into kryptonite by building pipelines to our coasts.\u201d<\/p>\n<p data-async=\"\"><em>\u2022 Email: mpotkins@postmedia.com<\/em><\/p>\n<p data-async=\"\"><em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>A 10% tariff on Canadian energy is coming. What now?<\/a><br \/>\n<br \/>2025-02-03 14:13:41<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Commodities Energy Oil &amp; Gas News The levy will hurt energy companies, but few expect it to crater demand for Canadian crude Get the latest from Meghan&#8230;<\/p>\n","protected":false},"author":2,"featured_media":55791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/02\/0204-bc-oil.jpg?quality=90&strip=all&w=288&h=216&sig=owqi9zxks-ehEgMOjfAE5Q","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-55790","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/55790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=55790"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/55790\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/55791"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=55790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=55790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=55790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}