“Canada’s Greatest Export” Terry Etam, author of The End of the Fossil Fuel Insanity: Clearing the Air Before Cleaning the Air’; columnist for the BOE Report and blogger for Public Energy Number One; gives an update from Calgary, Alberta, Canada.
Etam, who also works in the natural gas industry for a mom-and-pop company, explains how the U.S. tariffs will impact the Canadian economy, American lifestyles and global supply chain.
The two also discuss Jack Daniel’s being the symbolic start of a US Canada Trade War, Alberta leaving Canada to become the United State’s newest state and some music offerings from Mother Love Bone.
For an average middle-class family in Canada or the United States, the oil and gas industry plays a fundamental role in daily life, influencing everything from transportation and home heating to the price of groceries and manufactured goods.
The recent U.S. tariffs on Canadian and Mexican imports—especially energy products—could have widespread economic consequences. These tariffs are likely to raise costs for consumers, disrupt the global supply chain, and impact energy companies on both sides of the border.
How Canada Will Be Impacted
The United States is the largest buyer of Canadian energy products, with oil and gas exports accounting for about a third of Canada's total exports to the U.S. The 25% tariff proposed by the Trump administration could have significant effects:
Higher costs for Canadian producers: With added tariffs, Canadian oil and gas companies would face reduced demand, forcing them to either absorb costs or pass them on to consumers.
Lower production and job losses: If demand from the U.S. declines, Canadian energy companies may scale back operations, potentially leading to job losses in Alberta and other energy-producing regions.
Economic slowdown: Canada’s GDP relies heavily on energy exports, meaning a decrease in U.S. trade would affect government revenues, infrastructure spending, and public services.
How the U.S. Will Be Impacted
Ironically, the tariffs could also backfire on American consumers and businesses:
Higher fuel prices: Since the U.S. imports around 7 million barrels of oil per day, the cost of refining gasoline and diesel would increase, leading to higher pump prices.
Higher household energy costs: Natural gas and heating fuel costs could rise, making home heating and electricity more expensive, especially in colder northern states.
Weaker refining businesses: U.S. refiners rely on Canadian heavy crude to balance their production. With added costs, some refineries may operate at a loss or pass the expenses to consumers.
Global Supply Chain Impact
Beyond North America, the tariffs could disrupt the global energy market:
China’s market expansion: Chinese refineries may seize the opportunity to increase market share as American companies lose competitiveness due to higher costs.
Increased volatility: The uncertainty in North American energy trade could lead to price swings in global oil and gas markets, affecting energy security worldwide.
Common Everyday Goods Affected
For a family in the U.S. or Canada, these price hikes will be noticeable in several key areas:
Gasoline and diesel fuel: Daily commuting costs will rise due to higher refining costs.
Home heating and electricity: Winter heating bills could be significantly higher.
Groceries: Food production and transportation costs will increase, leading to more expensive groceries.
Manufactured goods: Products made with petroleum-based materials (plastics, chemicals, etc.) will see price hikes.
Countries and Energy Companies Affected
Countries: Canada, Mexico, and Colombia will experience economic strain, while countries like China may benefit from the market shift.
Energy companies: Major players like Suncor Energy, Enbridge, ExxonMobil, and Valero could see financial impacts, affecting investments and employment in the sector.
The proposed U.S. tariffs on Canadian and Mexican energy imports will have far-reaching consequences, increasing costs for average families while disrupting energy markets. Rather than securing American energy independence, these tariffs may end up hurting both nations, driving up consumer prices and destabilizing the global oil trade.
But then again, it may unleash new opportunities in the market for new companies and small business operators to compete and better their lives.
Everyday your story is being told by someone. Who is telling your story? Who are you telling your story to?
Email your sustainable story ideas, professional press releases or petro-powered podcast submissions to thecontentcreationstudios(AT)gmail(DOT)com.
#thecrudelife promotes a culture of inclusion and respect through interviews, content creation, live events and partnerships that educate, enrich, and empower people to create a positive social environment for all, regardless of age, race, religion, sexual orientation, or physical or intellectual ability.
CLICK HERE FOR SPECIAL PARAMOUNT + DISCOUNT LINK
Don't miss out! Stream College Basketball on CBS live with the Paramount+ with SHOWTIME plan.
Start Streaming Today!
CLICK HERE FOR SPECIAL PARAMOUNT + DISCOUNT LINK
Share this post