
The imminent impact of US trade tariffs elicited concern from company executives and sharp words from Canadian government officials at a major energy industry conference Tuesday.
During an all-Canadian energy panel at the CERAWeek by S&P Global event in Houston, speakers veered between venting frustration and anger at the tariffs and urging fellow Canadians to seek new, alternative trading partners to the US.
Ontario Energy Minister Stephen Lecce described US President Donald Trump’s policy as an unjust “attack” that will damage the economies of both nations. Saskatchewan’s Premier Scott Moe said the emerging trade war has triggered “disbelief and shock” in Canada and even “a little bit of anger.”
“Friends don’t do that to friends,” said Brian Jean, the minister of energy and minerals for oil-rich Alberta.
Canadian government officials have been highly visible at CERAWeek since it started Monday. Alberta Premier Danielle Smith kicked off the week with a press briefing, getting in ahead of US Energy Secretary Chris Wright’s keynote speech. She said she doesn’t foresee a slowdown in Canadian oil output, despite tariffs being imposed on its crude shipments south of the border.
Tensions between the two nations rose Tuesday after Trump said he would impose tariffs of 50% on Canadian metals, in response to Ontario imposing a 25% surcharge on electricity sent to US states. Later in the day, Ontario suspended its plan, while the White House said it will go ahead with 25% tariffs on metals from Canada and other countries, starting at midnight.
The tariffs promise to raise costs for energy companies building infrastructure in the US. Tenaris SA, one of the largest suppliers of steel pipe to domestic oil and gas companies, said the industry needs to explain the consequences to the Trump administration.
“Putting tariffs on this product is a useless burden for our customers and is not helping the domestic industry,” Tenaris US president Luca Zanotti told conference attendees. Chad Zamarin, executive vice president at US pipeline operator Williams Cos., also expressed concern about price increases.
The US oil and gas industry is seeking exemptions from tariffs on metals, Erik Milito, the president of Washington-based trade group the National Ocean Industries Association, said in an interview.
Tariffs are also weighing on broader market sentiment. Trading house Vitol Group’s boss Russell Hardy said they have destabilized commodity prices. TotalEnergies SE Chief Executive Officer Patrick Pouyanné said the tariffs create uncertainty and easing those concerns “would be the best thing to do to avoid a recession.”
“Markets are saying, ‘we don’t like uncertainty,’” Pouyanné said.
Some of the Canadian officials on the conference panel looked for a silver lining. Canadians “almost needed this kick in the butt” to become less reliant on the US, Ontario’s Lecce said.
“We need to be more competitive, and we are doing exactly that,” Alberta’s Jean said.
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