In Washington, Minister Wilkinson urges a strong energy partnership to counter tariffs and enhance North American resource security
Wilkinson’s plan is kind of like a current deal between Canada and the U.S. Department of Defense. It aims to boost North America’s supply of critical minerals and reduce reliance on China.
He mentioned that this alliance could be on a much larger scale. The U.S. and Canada already teamed up last year to fund Canadian companies to speed up mine development and strengthen supply chains for critical minerals.
Wilkinson believes they should prioritize projects together to keep the industry stable in North America. The best part? This wouldn’t need Congressional approval, so it wouldn’t be tied to any trade agreements.
He’s the latest Canadian official to visit Washington since Trump announced plans for 25% tariffs on all Canadian imports. During his talks, Wilkinson emphasized that the U.S. can’t be energy-dominant without Canadian resources.
He pointed out that Canadian electricity powers six million American homes, and the U.S. imports four million barrels of Canadian oil daily. Plus, Canada supplies natural gas to parts of the Pacific Northwest and California.
Wilkinson also highlighted the U.S. dependence on Canadian uranium, potash, and critical minerals. Strengthening energy ties would help both countries reduce reliance on China, Russia, and Venezuela, which aligns with Trump’s goals.
He warned that a tit-for-tat tariff exchange wouldn’t help anyone. However, he acknowledged that the new administration likes quick results, and any alliance would need time and consultation.
Wilkinson met with several Republican and Democratic senators and industry experts. Most lawmakers get that Canada and the U.S. need each other.
Despite Trump’s tariff plans, Canadian leaders are brainstorming responses. NDP Leader Jagmeet Singh suggested retaliatory tariffs on critical minerals.
During a meeting in Ottawa, Trudeau and the premiers agreed to stay united and keep all options open. However, Alberta’s Premier Danielle Smith said her province won’t support Ottawa’s plan unless energy export restrictions are lifted.
The potential tariffs could hit the Canadian economy hard, with estimates suggesting a 2.6% GDP shrinkage and an average household cost of $1,900 annually.
The American economy would feel the pinch too, as over 20 states rely on Canada for $176 billion in mineral imports.
The Canadian Federation of Independent Business warned that two-thirds of small businesses might raise prices due to tariffs. They’re calling on all governments to cut red tape and ease the tax burden on small businesses.
Manufacturers are also sounding the alarm, urging Trudeau to take immediate action to protect their sectors from the economic fallout of these tariffs.
