Trump has told the World Economic Forum U.S. doesn’t need Canadian oil, gas, autos or lumber
U.S. President Donald Trump stated that the United States no longer requires Canadian imports of oil, gas, autos, or lumber.
“We’re going to demand respect from other countries... Canada has been tough to negotiate with over the years,” Trump said during his virtual address at the World Economic Forum in Davos on Thursday, speaking to a global audience of influential business and political leaders.
“We don’t need them to build our cars, even though they make many. We don’t need their lumber because we have our own forests,” he added. “We don’t need their oil and gas—we have more than anyone.”
Trump reiterated his earlier suggestion that Canada could join the U.S. as a way to avoid the 25% tariffs he plans to impose by February 1st, a threat that has created uncertainty in Canadian political and business circles. Ottawa has warned that if Trump follows through, it will retaliate sharply.
Canada's Key Exports
If the U.S. were to reduce its reliance on Canadian exports, it would disrupt the long-established trade relationship between the two countries.
For example, Canada is the top supplier of crude oil to the U.S., accounting for more than 60% of the U.S.'s imports in 2023, according to the Government of Canada. In terms of natural gas, Canada provided 99% of the U.S.'s imported supply in that year.
The Canadian Vehicle Manufacturers Association reported that 92% of Canada’s vehicle exports went to the U.S. in 2022. Furthermore, the parts that make up these vehicles often cross the Canadian-U.S.-Mexican border up to eight times before assembly.
Canada’s forestry exports were valued at $45.6 billion in 2022, with most of it going to the U.S., according to Statistics Canada.
The Canadian Chamber of Commerce states that about $3.6 billion worth of goods cross the border each day, with the trade relationship directly supporting 3.7 million jobs in both countries.
Business leaders have warned that a trade war could result in hundreds of thousands of layoffs across Canada.
Scott Crockatt, Vice President of the Business Council of Alberta, called a 25% tariff a “devastating” blow for the country. David Adams, CEO of Global Automakers of Canada, told CTV News Channel that if the tariff environment becomes too challenging, auto production plants might be forced to close.
Canada’s Response as a ‘Trustworthy’ Partner
Canadian Prime Minister Justin Trudeau emphasized that Canada is “ready to respond firmly,” but would take a measured approach.
A senior source informed CTV News that the response would occur in three phases. The first phase would involve the immediate imposition of tariffs on certain U.S. products, including Florida orange juice and Kentucky bourbon, with a directive to Canadians to avoid purchasing these items.
The second phase would follow a two-week consultation period and cover $37 billion of U.S. goods. Depending on the scale of U.S. tariffs, a third phase could target an additional $110 billion in American imports.
Trudeau warned that in the event of a trade war, two outcomes are certain: Canada would mount a “strong, robust response,” and U.S. consumers would face higher prices on a wide range of goods.