Canada’s Secret Card: $100 Billion Oil Retaliation on the U.S., as Trump Sets 50% Tariffs on Steel

President Donald Trump's announcement on Might 30, 2025, to raise tariffs on steel and aluminum imports from 25% to 50%, efficient June 4, 2025, has ignited an intense trade conflict with Canada, a major provider of these metals to the U.S. Revealed throughout a rally celebrating Nippon Steel's investment in American market, the tariff hike intends to protect domestic markets however threatens Canada's $35 billion steel and aluminum trade. Prime Minister Mark Carney condemned the relocation as an attack on Canadian workers, particularly in Alberta, where the metals market deals with possible collapse. In retaliation, Canada has actually threatened to reroute or halt $1.3 billion in oil exports, leveraging its position as the world's fourth-largest crude oil manufacturer and a key supplier of 4 million barrels everyday to U.S. refineries. This might increase U.S. gasoline costs by $0.30–$ 0.40 per gallon, running the risk of customer reaction and supply chain interruptions. Canada's growing oil export capacity to Asia via the Trans Mountain pipeline boosts its leverage, though pivoting completely from the U.S. market remains tough. The intensifying stress run the risk of a trade war, with both countries dealing with economic fallout– Canada with task losses and the U.S. with greater costs. As diplomatic talks loom, the result hinges on whether Trump's aggressive position or Carney's oil card will dominate, or if a compromise can avoid a breakdown in U.S.-Canada relations. This high-stakes showdown highlights the fragility of worldwide trade networks.

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