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Canada warns Trump tariffs could leave US reliant on Venezuela oil: FT

  • By Al Mayadeen English
  • Source: Financial Times
  • 31 Jan 2025 12:20
  • 1 Shares
3 Min Read

Canada's Foreign Minister Mélanie Joly is in Washington for crucial meetings aimed at preventing a looming trade war with the United States.

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  • Canada warns Trump’s tariffs could leave US reliant on Venezuela oil
    Canada's Foreign Minister Melanie Joly arrives for the first day of the meeting of NATO Ministers of Foreign Affairs in Bucharest, Romania, on November 29, 2022. (AP)

Canada’s foreign minister warned that the US could be forced to purchase oil from geopolitical rivals like Venezuela if it disrupts trade with Canada, the Financial Times reported.

Mélanie Joly told the Financial Times that if the US follows through on its threat to impose 25% tariffs on Canadian imports, it would directly impact "real people" and harm relations between the two nations.

Regarding the heavy grades of oil produced in Venezuela and Canada on which American refineries depend, Joly said, "We ship oil at a discount which is, ultimately, refined in Texas. If it’s not us, it is Venezuela."

"There’s no other option on the table, and this administration doesn’t want to work with Venezuela," she added.

Joly was in Washington, leading Canada’s urgent effort to avert a full-scale trade war as President Trump reiterated his threat on Thursday to impose 25% tariffs on Canada and Mexico starting February 1.

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President Trump suggested he might exempt oil imports from tariffs, acknowledging the US' reliance on Canada for crucial energy supplies.

Despite growing shale oil production, Canada provides about 20% of the oil consumed in the US and 60% of its imported crude, with US refineries relying on heavier oil from Canada or Venezuela.

Joly is set to meet with senior US officials, warning that trade tensions would harm "real people", particularly in Republican states. She also highlighted Canada's readiness for retaliatory tariffs, including US steel and orange juice, if Trump follows through with his threats

On that note, Trump stated on Thursday that he would soon decide whether to exempt Canadian and Mexican oil imports from the 25% tariffs he plans to impose on the countries' products this Saturday.

"We may or may not. We're going to make that determination probably tonight," Trump said regarding the potential tariffs on Canadian and Mexican oil. He further explained that the decision would partly depend on prices and whether the two countries "treat us properly."

Trump's deadline on imports from Mexico and Canada is allegedly aimed at pressuring the two largest US trading partners into taking action to stop illegal migrants and fentanyl shipments from crossing into the US. 

  • United States
  • Canada
  • Venezuela
  • Mélanie Joly
  • Donald Trump

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