Canada seeks minerals partnership with US amid tariff threats
Where President-elect Trump sees a rivalry, Canada sees a potential friend.
America’s neighbor to the north this week is floating an energy and minerals partnership with the U.S., Canadian Energy and Natural Resources Minister Jonathan Wilkinson told The Hill on Tuesday.
“We've also put together, essentially the idea of an energy and minerals partnership that actually has a number of projects that can be of direct benefit to the United States,” he said in a phone interview.
Wilkinson added that this could involve Canada “accelerating the production in Canada of gallium and germanium,” which have defense applications and of which China recently banned shipments to the U.S.
He said that the partnership could also extend to oil and nuclear energy.
“There is an opportunity for us to create a nuclear fuel cycle that is actually completely independent here in North America, where Canada provides uranium, but the enrichment is done in the United States,” Wilkinson said.
“There's more that we can do out of existing infrastructure to provide more oil to the United States, which allows it to export more oil around the world, which gives it more geopolitical influence,” he added.
His overture comes as Trump is calling for a 25 percent tariff on all Canadian and Mexican goods, saying that the two countries are not doing enough to improve border security and prevent fentanyl from entering the U.S.
One product that could be particularly hard hit is oil, as Canada provides 52 percent of American petroleum imports.
Wilkinson is warning that a potential tariff on oil will hurt Americans and Canadians alike.
“That is something that will create pain in Canada, there is no question about that, but it will also create economic pain in the United States,” he said, projecting that it would raise U.S. gasoline prices by 75 cents per gallon.
“I think it’s a lose-lose for both Canada and for the United States,” he added.
An oil consultant gave The Hill a more conservative number last month — estimating that the surcharge could amount to about 40 cents per gallon.
Wilkinson, visiting Washington, D.C., this week, is seeking to convince the U.S. not to put tariffs on Canadian oil. He’s meeting with senators, including Sens. Kevin Cramer (R-N.D.) and Ted Cruz (R-Texas), who come from major oil-producing states.
In order to assuage Trump’s concerns, Wilkinson said Canada has already announced a major border package.
“We actually agree that there's more that can be done at the border on both sides,” he said.
He also rebuffed Trump’s suggestion that Canada could become the 51st U.S. state.
“Canada is a sovereign country,” he said. “We are quite different.”
“We have two different languages that are French and English. We have parliamentary institutions. Our national game is ice hockey and we go to Tim Hortons, not Dunkin' Donuts,” he added. ”Canadians are proud to be Canadians, but we also are great friends and great admirers of the United States of America.”