Canada’s trade chief has warned that oil and gas exports could be at stake

If elected President Donald Trump he continues his threat Tariffs on Canadian goodsOttawa is poised to retaliate with tariffs that could target the energy sector, Canada’s International Trade Minister Mary Ng said Thursday.

“Everything is on the table,” Ng told the global market reporter Seema Mody on CNBC’s “Squawk on the Street.”

This includes retaliation between dollars. Canada’s trade chief also refused to rule out a tax on exports Canadian oil and gas Bound for the United States.

“I don’t think the Americans want us to sell electricity, oil and gas to America, because you know, I’m here in New York, the Broadway lights, a lot of it is Canadian electricity,” Ng said.

“If you put tariffs on Canada, what it’s really going to do is make things more expensive for Americans,” he added.

Trump He has threatened a standard tariff of 25% on all Canadian exports takes office monday The threat is similar to that made against Mexico, one of the three parties to the USMCA trade agreement. Trump has also talked about increasing tariffs on Chinese imports by 10%.

Canada and the US have an almost unparalleled trade relationship. In 2022, it was Canada biggest buyer Third largest exporter of American goods and goods to the US

Ng and his team are drafting a list of US exports to Canada that could see additional tariffs if trade tensions escalate. “Everything will be on the table,” he said.

The same is true for Canadian goods entering the United States.

“You can be sure that if you’re buying something (at a supermarket) … think of a candy bar. There’s probably going to be a Canadian in there. So if you pay $4 today, you’ll pay $5 tomorrow,” Ng said.

The potential threat of a future trade war with the United States is prompting Ottawa to continue engaging with other trading partners around the world, including Japan and the European Union.

“I’ve always had a mandate to diversify as Canada’s trade ministry,” Ng told CNBC. “It is very good for us to work with America, but absolutely we must also look for opportunities around the world. And we are doing it.”

It is not the first time Trump has used tariff threats in an effort to restart trade negotiations with America’s northern neighbor.

During his first term, Trump imposed tariffs on Canada steel and aluminum exports to the USA

The move prompted Ottawa to announce retaliation rates in US products like beef, chocolate, ketchup, etc.

At that time, Canada did not hide it selection criteria in order to hit US exports with additional tariffs. The products were deliberately chosen by Prime Minister Justin Trudeau’s government politically powerful places, like battleground states and those with powerful representatives in Congress.

The idea was that the adverse economic effects of declining exports would be felt most by people in the communities that made or grew the products. They, in turn, will put additional pressure on elected officials in Washington — including Trump, who is running for a second term — to resolve tensions.

This time, Ng said Canada is looking for “more common services” before any escalation. He also said Ottawa is working to better secure the US-Canada border. This could help Trump fulfill a key campaign promise.

“I think we have a great opportunity right now for Canada and the U.S. to build an even stronger economy, a stronger North American economy, working together,” Ng said.

Increasing this cooperation could mean buying more from the United States, Kirsten Hillman, Canada’s ambassador to the US, said. Associated Press on monday Seventy percent of Canada’s military hardware is sourced from the U.S., Hillman said.

When it comes to buying more military equipment, “Everything is on the table,” Ng told CNBC, from fighter jets to drones.

Canada is currently in the midst of a leadership shakeup. Prime Minister Justin Trudeau He resigned earlier this month. Trudeau’s resignation came weeks before his former ally and deputy prime minister Chrystia Freeland He also resigned.

In announcing his resignationFreeland, who was also the country’s finance minister, cited differences with Trudeau over the direction of Canada’s trade policy with the United States.