Canada may impose non-tariff measures, including restrictions on oil exports to the United States, if trade tensions with Washington escalate, Energy Minister Jonathan Wilkinson warned late Tuesday.
Wilkinson indicated that tariffs on U.S.-bound ethanol are “absolutely” being considered as a retaliatory measure, particularly if former President Donald Trump follows through with plans to impose a 25% tariff on Canadian goods in April. He emphasized that Canada does not seek to escalate tensions but will respond swiftly if tariffs are implemented, aiming for a positive resolution.
For now, Ottawa is taking a wait-and-see approach regarding Washington’s next moves.
Market Reaction
At press time, the USD/CAD pair dipped 0.02% on the day, trading at 1.4432.