Energy enters Canada’s U.S. trade strategy as Ford pushes pressure and Smith warns of the cost
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A disagreement has emerged between Ontario Premier Doug Ford and Alberta Premier Danielle Smith over whether Canada should use energy exports as leverage against the United States as provinces and Ottawa consider how far to go in responding to the latest U.S. trade escalation without inflicting further damage on Canada’s own economy.
Ford said he spoke with Smith this week after calling on provinces to take a "Team Canada" approach. He argued that Canadian resources, including oil, electricity, potash and uranium, should not automatically be excluded from the country’s options if the dispute escalates. Ford has also stressed that such measures should be coordinated with Ottawa and other provinces rather than pursued by Ontario alone.
Smith rejects the idea of restricting Alberta’s energy exports to the United States, saying it would be extremely harmful to Canadians and is not a viable option. Her position is that a strong energy industry generates revenue that governments can use to support workers and sectors hit by the trade dispute, while Canada should focus on expanding pipelines and developing additional export markets.
The debate carries significant economic weight because of U.S. dependence on Canadian resources. Roughly four million barrels of Canadian crude flow to the United States each day, accounting for close to one fifth of U.S. petroleum consumption. Canada is also a major supplier of electricity, potash and aluminum. That interdependence makes energy a potentially powerful negotiating tool, but also a risky one for Canadian producers and workers.
The issue is particularly sensitive because the latest U.S. tariffs have so far excluded energy, potash and some critical minerals, highlighting their importance to American industry. Canada therefore faces a difficult choice: use sectors Washington relies on to increase pressure, or keep them outside the dispute to protect Canadian jobs and revenue.
Despite their disagreement, Ford and Smith remain aligned on expanding Canada’s ability to move its own energy domestically. The two premiers are working to advance a proposed oil pipeline that would carry more Alberta crude through Saskatchewan and Manitoba to refineries in Sarnia, Ontario. Ford also said he plans to meet Smith in Alberta in the coming weeks.
The debate, then, is no longer simply about whether Canada has economic leverage over the United States. It is about how much of that leverage Canada can use without imposing an unacceptable cost on itself.
