Jason Kenney says oil needs to be on the table in U.S. tariff war

Former Alberta premier Jason Kenney is urging Canada to include oil and gas exports in its retaliatory measures against U.S. tariffs, asserting that the province is too passively responding to the trade dispute.

Kenney believes Canada possesses the leverage to significantly pressure the United States through its energy exports. "You don’t deal with an aggressive attack on your economy by starting with listing all the things you will not do in reprisal by limiting your options, by weakening your position," he stated in an interview.

While acknowledging that completely cutting off exports might not be feasible due to Central Canada's reliance on oil shipped through the U.S., Kenney suggests that export taxes on fuel and potash could be strategically employed. He posits that such measures would be highly sensitive to American consumers, especially during a cost-of-living crisis, potentially impacting Republican voters.

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You don’t deal with an aggressive attack on your economy by starting with listing all the things you will not do in reprisal by limiting your options, by weakening your position.

This stance contrasts with current Alberta Premier Danielle Smith's position. Smith has consistently stated that oil and gas will not be part of the trade war, arguing that halting energy exports would harm Canadians and deprive the country of funds needed to support other sectors affected by U.S. tariffs. She advocates for negotiation and avoiding further escalation, emphasizing that counter-tariffs increase costs for businesses and workers.

Other premiers, like Ontario's Doug Ford, have expressed willingness to use economic tools, including oil and potash exports, to counter U.S. actions. However, Smith remains firm on her approach, prioritizing negotiation and seeking to avoid economic damage to Canada.

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We should do all we can to avoid further escalation.