(CLO) A senior Canadian official has warned that the country could cut off energy supplies to the United States if President-elect Donald Trump carries out his plan to impose tariffs on goods imported from Canada.
"We will cut off energy flows to Michigan, New York and Wisconsin," Premier Doug Ford of Ontario, Canada's largest province, said on December 13.
Mr Ford stressed that Canada needs to use “every tool in the toolbox” if Mr Trump decides to go ahead with his plan to impose a 25% tariff on Canadian imports on day one of his inauguration.
Although Ontario is not a major producer of crude oil, Mr. Ford's threat appears to be aimed at electricity that the United States imports from Canada.
Illustration: Internet
If Trump’s proposed tariffs are implemented, the Canadian economy could be pushed into recession. Ford’s threat suggests some Canadian officials are calling for a strong response that could temporarily disrupt power and fuel supplies to parts of the United States.
“This is a threat that cannot be ignored,” warned Patrick De Haan, director of petroleum analysis at GasBuddy. “Canada does not want to just stand by and watch.”
The United States regularly imports hydroelectric power from Ontario, Quebec, and British Columbia. Although Canadian imports account for only a small portion of total U.S. energy consumption, these provinces play an important role in providing electricity during times of high demand or when domestic supplies are low.
Last year, the United States imported 38.9 million megawatt hours of electricity, with 33.2 million megawatt hours of that coming from Canada. However, that represents less than 1% of the total annual electricity consumed by the United States, according to the U.S. Energy Information Administration (EIA).
In addition to electricity, Canada is also the largest supplier of crude oil to the United States. Every day, the United States imports about 1.4 million barrels of crude oil from Canada, accounting for more than half of the total oil imported by the United States.
With the Trans Mountain pipeline extending from Alberta to the Pacific Ocean, Canada could sell oil to Asian countries like Japan, South Korea and China, which could give Canada more options if needed.
Alberta Premier Danielle Smith has made it clear that she does not want to take action to cut oil and gas exports and prefers to resolve the issue through diplomacy.
Ngoc Anh (according to CNN, FOX, NYP)
Source: https://www.congluan.vn/quan-chuc-cap-cao-canada-doa-cat-nguon-nang-luong-sang-my-post325591.html
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