The Globe and Mail reports in its Thursday, Jan. 16, edition that Canada is facing a political and economic crisis due to president-elect Donald Trump's proposed 25-per-cent tariffs on Canadian exports. A Globe editorial says imposing restrictions on oil and gas exports from Alberta and Saskatchewan could permanently harm those provincial economies. If American refineries switch to alternatives like Venezuelan heavy crude, they may not revert back even if tariffs are lifted. Imposing export charges on oil and gas to punish Americans for Mr. Trump's tax would cause significant harm to the oil sector, Alberta and Saskatchewan's economies, and national cohesion. The Globe says Mr. Trump is delusional when he claims the U.S. spends $200-billion (U.S.) annually in subsidies to Canada. He is referring to the United States trade deficit with Canada, which is not a subsidy at all. To respond effectively to U.S. tariffs on Canadian exports, Ottawa could impose corresponding tariffs on U.S. goods, similar to its actions during Mr. Trump's previous trade war attempts. In this time of national crisis, Canada must present the United States with a united front. That means keeping export charges off the table.
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