(Bloomberg) -- Canada’s effort to push back against possible US tariffs is being undermined by Alberta Premier Danielle Smith’s pledge to fight federal plans to cut or tax crude exports to the US, Canada’s natural resources minister said.
The size and nature of tariffs against Canada by the Trump administration aren’t clear even to people close to the president-elect, but Canada can’t take any “tools off the table” in its response, Jonathan Wilkinson said Thursday after a visit to Washington to meet with US lawmakers.
Smith, the leader of Canada’s top oil-producing province, said Wednesday she won’t support the federal government’s response to the tariff threat unless it rules out cutting or taxing energy supplies to the US as a countermeasure.
“Canada needs to speak with one voice,” Wilkinson said. “The fact they are hearing different messages from the government of Alberta than from Canada is not helpful.”
While Wilkinson declined to say exactly how the Canadian government would respond to tariffs, he said the aim would be to maximize pain for American producers while minimizing pain for Canadian consumers, and that “nothing is off the table.” The response could involve rare earth minerals, which Canada exports to the US, he said.
Canadian oil prices stabilized somewhat on Thursday morning after weakening through the week. Heavy Western Canadian Select for second quarter delivery traded at an $18-a-barrel discount to US benchmark crude on Thursday, according to a person familiar with the pricing. The discount had widened to $17.75 a barrel on Wednesday, from $14.70 on Monday.
(Updates with Canadian oil price in final paragraph.)
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