Pipe for the Trans Mountain pipeline is unloaded in Edson, Alta. on Tuesday June 18, 2019. The Canadian Association of Petroleum Producers says it is pleased, but not surprised, by the Supreme Court ruling that shut down British Columbia's attempt to regulate what can flow through an expanded Trans Mountain pipeline. THE CANADIAN PRESS/Jason Franson

The Canadian Association of Petroleum Producers’ president and CEO says she is “deeply disappointed” by Trump’s 10 per cent tariff on Canadian oil and gas. (THE CANADIAN PRESS/Jason Franson) · The Canadian Press

Canada’s main oil and gas lobby group says the federal government must help the industry broaden its global export reach, now that Canada-U.S. trade has “fundamentally changed” under President Donald Trump.

In a statement on Tuesday, the Canadian Association of Petroleum Producers (CAPP) said it’s “deeply disappointed” by Trump’s decision to impose across-the-board tariffs on imported Canadian goods. U.S. tariffs imposed on Tuesday include a 10 per cent levy on Canadian energy products like oil and gas.

“We are at a significant moment in Canada’s history – we need to seize this moment,” CAPP president and CEO Lisa Baiton said in a statement on Tuesday. “The choices we make today will determine whether we become a global energy leader or continue to fall behind.”

According to CAPP, Canada exported roughly 80 per cent of its total oil supply to the U.S. in 2023, and is the largest foreign supplier to the United States.

Historically, a lack of pipeline takeaway capacity to coastal export terminals has limited Canadian exports to other markets. The expansion of the Trans Mountain Pipeline from Alberta to Canada’s West Coast last year boosted exports of Canadian crude to non-U.S. markets, including Asia.

“We must now recognize the relationship with our closest friend, ally, and trading partner has fundamentally changed,” Baiton added.

“In this moment, we must act with urgency to focus on the Canadian national interest. Without greater global market reach and energy security, Canada has little leverage in our trade relationship with the United States.”

On Tuesday, Enbridge CEO Greg Ebel said it would be difficult for producers in Canada to find new non-U.S. sources of demand beyond current foreign exports.

Given the high-integrated nature of the industry on both sides of the border, he said U.S. tariffs would have to be in place for a “very long time” to impact trade and flow patterns.

Baiton urges lawmakers in Ottawa to start a “policy overhaul” to create a “streamlined and durable regulatory framework that allows projects with viable markets and motivated investors to succeed.”

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

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