Where President-elect Trump sees a rivalry, he sees a potential friend in Canada.
America's northern neighbor is considering an energy and minerals partnership with the United States this week, Canadian Energy and Natural Resources Minister Jonathan Wilkinson told The Hill on Tuesday.
“We're also putting together an idea that is essentially an energy and minerals partnership, and it includes a number of projects that could actually directly benefit the United States,” he said in a phone interview.
Wilkinson added that this could involve Canada “accelerating production in Canada of gallium and germanium,” which have defense uses and which China recently banned from being shipped to the United States.
He said the partnership could also extend to oil and nuclear power.
“Here in North America, Canada supplies the uranium, but the enrichment happens in the United States, so we actually have an opportunity to create a completely independent nuclear fuel cycle,” Wilkinson said.
He added: “There is still much we can do with our existing infrastructure to provide more oil to the United States. This will allow the United States to export more oil around the world and “It will increase its influence,” he added.
As President Trump calls for a 25% tariff on all Canadian and Mexican products, his proposal would be enough for both countries to improve border security and stop fentanyl from entering the United States. This was carried out despite the fact that no serious effort had been made.
One product that could be particularly hard hit is Canada's oil offering. 52 percent US oil imports.
Wilkinson warned that potential tariffs on oil would hurt Americans and Canadians alike.
“This is going to cause pain for Canada, there's no question about that, but it's going to cause economic pain for the United States as well,” he said, adding that U.S. gas prices would rise by 75 cents a gallon. I expected it.
“I think this is going to be a loss for both Canada and the United States,” he added.
Oil consultants gave a more conservative number to The Hill last month, estimating the levy could be about 40 cents a gallon.
Mr. Wilkinson is in Washington, D.C., this week trying to persuade the United States not to impose tariffs on Canadian crude oil. He has been meeting with Sen. Kevin Cramer (R-Texas) and other senators from major oil-producing states.
Wilkinson said Canada has already announced extensive border policies to allay President Trump's concerns.
“We actually agree that there is more that can be done on our borders,” he said.
He also rejected President Trump's suggestion that Canada could become the 51st U.S. state.
“Canada is a sovereign nation,” he said. “We are completely different.”
“We have two different languages, French and English. We have a parliamentary body. Our national game is ice hockey, and we go to Tim Hortons instead of Dunkin' Donuts,” he said. added. “Canadians are proud to be Canadian, but we are also great friends and great admirers of the United States.”
