Prime Minister Mark Carney tells Canadians: US tariff will wipe $50 billion from Canada's economy, and for you ...

Prime Minister Mark Carney of Canada is counting on the country's energy sector to help the Canadian economy weather uncertainty from the US President Donald Trump’s tariffs. Carney signed an agreement with Alberta's premier that rolls back certain climate rules to spur investment in energy production, while encouraging construction of a new oil pipeline to the West Coast. Under the agreement, the federal government will scrap a planned emissions cap on the oil and gas sector and drop rules on clean electricity, in exchange for a commitment by Canada's top oil-producing province to strengthen industrial carbon pricing and support a carbon capture-and-storage project.

Carney is seeking to diversify from the US market which currently takes 90 per cent of Canada’s oil exports. In remarks at an industry event in Calgary recently, Carney said that US tariffs and the resulting uncertainty will wipe $50 billion from Canada’s economy, the equivalent of $1,300 for every Canadian. He stressed the need to build projects that can spur growth and reduce US reliance. “This government will do whatever it takes to protect our sectors,” Carney told a news conference. “Not just protect them, but to help them reposition for the new global economy,” Carney said.





The energy deal, which has been reportedly hailed by the country's oil industry but panned by environmentalists, signaled a shift in Canada's energy policy in favor of fossil fuel development and is already creating tensions within Carney's minority government. Steven Guilbeault, who served as environment minister under Carney's predecessor Justin Trudeau, said he was quitting the cabinet over concerns that Canada's climate plan was being dismantled. In what is seen as a huge change in policy, Canadian PM has relaxed some environmental restrictions implemented by his predecessor, Justin Trudeau, while reaffirming his commitment to net-zero carbon emissions by 2050. Agreement also drops regulations for clean electricity. Canada seeks to diversify oil exports amid US trade uncertainty. Agreement removes emissions cap, aims to boost carbon pricing and storage.

Canada does not see deal with Donald Trump working

In what can be termed as tacit acknowledgment that a trade deal with the United States is increasingly unlikely, Prime Minister Carney introduced several measures Wednesday to keep afloat two industries severely harmed by President Donald Trump's flurry of tariffs: steel and lumber. Carney's move includes a new tariff on steel products, a reduction in the amount of foreign steel allowed into the country and a lowering of costs to move lumber and steel by rail.

Carney said that Canada would impose a 25% tariff on largely steel products like prefabricated buildings, wire and fasteners. Officials estimated that about 40% of those products come from the United States. Canada has a separate 25% tariff on U.S. steel.

Nothing to talk about on interaction with Trump

Canadian PM also recently said that he had spoken to US President Trump this week, but added that the exchange was "not newsworthy". He added that no talks were underway between the two countries right now. At the same time Canadian PM maintained that he wants to have good relations between US and Canada. “Of course we want to further improve the existing trading relationship with the United States,” Carney said. “We stand ready to re-engage when they are. But, at the same time, we’re going to do a few other things.”