The Effect of Tariffs on Local and International Energy Trade

Abstract

This article discusses the ongoing trade war initiated by the United States and its impacts on Canada’s energy sector. Canada’s retaliatory trade measures have escalated tensions, thus prompting additional tariffs and ultimately jeopardizing cross-border economic efficiency. There have been varying responses across Canadian provinces to the trade war, with energy-producing provinces emphasizing the need for trade diversification. This article argues that if Canada reduced regulatory obstacles provincially, it could increase Canada’s resilience against external trade disruptions. Further, the impact of the current trade war has influenced geopolitical stability, thus industry leaders must enhance energy security in the long-term to mitigate risk to the industry.