Mark Carney doesn’t plan on leveraging Canadian energy in trade war

Canadian Prime Minister Mark Carney doesn't plan on using Canadian energy as a bargaining chip in his country's trade war with the US, but according to a new speech, he's not ruling it out. During a press conference in Red Deer, Alberta, on July 29, Mark Carney spoke about the possibility of using Canadian energy as a strategic piece in the Canada/US trade war. Carney spoke about the importance of reliability as an energy supplier, and how he's focused on taking actions that bring the countries closer to a deal, not further.

Alongside Danielle Smith, Mark Carney spoke together on July 29 to announce a new infrastructure deal between Alberta and the federal government. After the announcement, Carney was asked about whether or not he would be willing to use Canada's energy as a bargaining chip against Donald Trump's tariffs. Canada exports over $150 billion in energy, including more than $3 billion in hydroelectricity, amounting to more than 10 per cent of the US's energy consumption.

Carney has made it very clear that it's his goal to end the trade war, end Trump's tariffs and try and rebuild Canada and America's relationship. Carney has claimed before that the two countries' relationship is structurally damaged, but he still believes they can return to being good trading allies. Pulling Canadian energy from the US would likely set negotiations between the two parties back severely, making Carney's goal more difficult to accomplish.

Carney also spoke about the importance of reliability as an energy supplier. If Canada opens the door to using its energy as a bargaining chip, it could tarnish the legacy of reliability the country has spent decades growing. Carney doesn't believe in sacrificing Canada's global reputation to gain a point against a political opponent known for his unpredictability. Canada is the sixth-largest energy producer in the world, and it exports more than 50 per cent of its yearly energy production.

Carney emphasized that his focus is cementing a deal with Donald Trump to end the trade war that has impacted both countries' economies over the last 18 months. Carney believes using Canada's energy will hamper the effort he's made over the last year to move towards a deal that ODnald Trump finds acceptable. Additionally, the Canada-United States-Mexico Agreement, or CUSMA, is now subject to an annual review process after U.S. President Donald Trump declined to renew it earlier this month.

Some premiers want to leverage energy

While Carney has expressed his unwillingness to use Canadian energy as leverage, some premiers do support the idea, and Carney said that the possibility is not out of the question. Both the premiers of Alberta and Saskatchewan turned down the possibility of leveraging energy, but the leaders of Ontario, Quebec, and New Brunswick said every potential option should remain on the table as of now. Doug Ford, the premier of Ontario, has previously threatened to cut off the US's energy supply from Ontario. New Brunswick Premier Susan Holt also said Canada should be willing to use the tools at its disposal.