Canada Warns of Dire Consequences if Trump’s Tariffs Lead to Venezuelan Oil Dependence
In a stark warning, Canada’s Natural Resources Minister, Amarjeet Sohi, has cautioned that the imposition of tariffs by the United States on Canadian steel and aluminum could have far-reaching consequences, including a potential dependence on oil from Venezuela.
Speaking at a press conference in Ottawa, Sohi emphasized that the tariffs, which were introduced by President Donald Trump in May, could lead to a significant increase in the cost of production for Canadian industries, including the energy sector. This, in turn, could force Canadian companies to seek alternative sources of oil, including Venezuela, which is currently under international sanctions.
"We’re concerned that the tariffs could have a ripple effect on our economy, particularly in the energy sector," Sohi said. "If Canadian companies are forced to pay more for steel and aluminum, it could lead to increased costs for production, which could, in turn, lead to a dependence on oil from countries like Venezuela."
Venezuela, which was once a major oil producer, has seen its production decline dramatically in recent years due to a combination of economic sanctions, corruption, and mismanagement. The country’s oil industry is now largely controlled by the government of President Nicolás Maduro, who has been accused of human rights abuses and electoral fraud.
Canada, which has traditionally been a major oil producer, has long been a vocal critic of the Maduro regime. In 2019, Canada joined the United States, the European Union, and other countries in imposing sanctions on Venezuela’s oil industry, citing concerns over human rights abuses and the country’s democratic governance.
However, if the tariffs imposed by the United States lead to a dependence on Venezuelan oil, it could have significant implications for Canada’s energy sector and its relationship with the Maduro regime.
"We’re concerned that this could lead to a situation where Canadian companies are forced to do business with a government that is widely recognized as illegitimate," Sohi said. "We’re working closely with our international partners to ensure that any solution to the tariff issue does not compromise our values or our commitment to human rights."
The Canadian government has been working to negotiate a new trade agreement with the United States, known as the United States-Mexico-Canada Agreement (USMCA), which would replace the North American Free Trade Agreement (NAFTA). However, the agreement has been delayed due to disputes over issues such as dairy tariffs and intellectual property.
In the meantime, the Canadian government is urging the United States to reconsider its tariffs and to work towards a solution that benefits all three countries. "We believe that a mutually beneficial agreement is possible, and we’re working hard to make that happen," Sohi said.
The warning from Canada’s Natural Resources Minister highlights the potential risks and consequences of the tariffs imposed by the United States. As the global economy continues to evolve, it is clear that the relationships between countries will be crucial in determining the future of trade and energy production.
