{"id":184269,"date":"2026-08-26T18:29:08","date_gmt":"2026-08-26T18:29:08","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/184269\/"},"modified":"2026-08-26T18:29:08","modified_gmt":"2026-08-26T18:29:08","slug":"trump-says-the-us-doesnt-need-canada-americas-economy-says-otherwise-4","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/184269\/","title":{"rendered":"Trump says the US doesn\u2019t need Canada. America\u2019s economy says otherwise."},"content":{"rendered":"

TORONTO, ONT \u2013 U.S. President Donald Trump says his country does not need Canada. But every day, roughly 4 million barrels of Canadian crude oil flow south, helping fuel American cars, trucks and airplanes and supply U.S. industry.<\/p>\n

And oil is only the beginning.<\/p>\n

Canada also supplies aluminum, potash to U.S. farms and parts for an auto industry built on both sides of the border.<\/a><\/p>\n

\u201cWE DON\u2019T NEED CANADA, THEY NEED US!\u201d Trump posted this week, repeating his long-running claim.<\/p>\n

Yet Trump has imposed a 50% tariff<\/a> on Canadian aluminum while acknowledging this week that the United States badly needs the metal.<\/p>\n

\u201cThis country desperately needs aluminum,\u201d Trump said. \u201cWe don\u2019t have it. We get it all from Canada for the most part, and we need it badly.\u201d<\/p>\n

The contradiction underscores how deeply the two economies remain intertwined \u2014 and how much could be at stake if Trump\u2019s trade war<\/a> reaches more of the energy, materials and supply chains that the U.S. still relies on Canada to provide.<\/p>\n

Canada fuels American industry<\/p>\n

Canada is the United States\u2019 second-largest trading partner after Mexico and energy is at the heart of that relationship. <\/p>\n

The two countries exchanged about $872 billion in goods and services last year. Canadian crude imports equal nearly 20% of total U.S. petroleum consumption, according to the U.S. Energy Information Administration, part of the Department of Energy.<\/p>\n

Daniel B\u00e9land, a political science professor at McGill University, said Trump\u2019s claim that the United States does not need Canada is \u201cabsolutely false,\u201d citing U.S. reliance on Canadian oil and natural gas and deeply integrated industries such as autos.<\/p>\n

Much of Canada\u2019s crude flows to Midwest refineries built to process its heavy oil into gasoline, diesel and jet fuel.<\/p>\n

Energy also explains much of the U.S. trade deficit with Canada, which Trump frequently cites as evidence of an unfair relationship.<\/p>\n

The White House this week portrayed the relationship in starkly negative terms, saying Canada had taken roughly $50 billion a year from the United States over the past decade. Much of that gap reflects U.S. purchases of Canadian energy, which helps power the U.S. economy. And Canada’s heavy crude typically trades at a discount to U.S. benchmark oil, according to the U.S. Energy Information Administration.<\/p>\n

Energy more than accounted for last year\u2019s $48.3 billion goods deficit. Without energy, the United States would have run a trade surplus.<\/p>\n

After trade talks collapsed last Friday, the U.S. imposed 50% tariffs<\/a> on about $20 billion worth of Canadian goods. The measures cover only about 5% of Canadian exports to the United States and exclude energy.<\/p>\n

Canadian politicians debate using energy exports as leverage<\/p>\n

For now, using oil as a weapon in trade negotiations remains a remote possibility. Alberta Premier Danielle Smith opposes restricting energy exports, arguing that doing so would hurt her province.<\/p>\n

But former Alberta Premier Jason Kenney said Canada should not rule out export taxes on oil, fuel or potash if Trump escalates further.<\/p>\n

Such retaliation \u201cwould affect Republicans who drive F-150s and lay fertilizer on their farm fields,\u201d Kenney said.<\/p>\n

\u201cThey should be mindful that if they really want to escalate, it will not end well for the American economy two months before midterm elections,\u201d he said.<\/p>\n

Ontario Premier Doug Ford cited Canadian commodities as leverage, accusing Trump of \u201cputting out fake news\u201d about the United States not needing Canada. He called potash used by U.S. farmers \u201cone of the most powerful tools we have\u201d and said Washington would have to turn to suppliers such as Russia if Canada redirected shipments.<\/p>\n

Kenney stopped short of advocating an export tax, and B\u00e9land said such a move would probably be \u201ca very divisive issue politically in provinces like Alberta and Saskatchewan.\u201d<\/p>\n

That underscores the limits of Canada\u2019s leverage: measures aimed at hurting U.S. industries could also hurt Canadian producers and strain political unity at home.<\/p>\n

From pickup trucks to farm fields<\/p>\n

Canada has long been the dominant foreign source of aluminum for the United States. Smelting the metal requires enormous amounts of electricity, giving hydro-rich Canada a major advantage.<\/p>\n

Prime Minister Mark Carney told a New York business audience in May that Canadian aluminum exports to the U.S. are \u201cthe energy equivalent of 10 Hoover dams.\u201d<\/p>\n

American farmers are even more dependent on Canada for potash, a fertilizer essential to crops such as corn and soybeans. More than 80% of U.S. potash imports come from Canada.<\/p>\n

Even Trump\u2019s ambassador has disputed the idea that the United States needs nothing from its neighbor.<\/p>\n

\u201cAmerica has a tremendous amount of things where we have a need,\u201d Ambassador Pete Hoekstra said in June. Pointing to Canadian fertilizer supplies, he added: \u201cWe need potash.\u201d<\/p>\n

Then there are cars. <\/p>\n

Canada and the United States have built an integrated auto industry in which parts can cross the border up to six times before final assembly, according to the Canadian government.<\/p>\n

Trump said Monday that his administration would impose 50% tariffs on Canadian cars, trucks and auto parts starting Jan. 1, 2027 \u2014 after the November midterm elections.<\/p>\n

That means a tariff aimed at Canada can land in Michigan or Ohio. Tax Canadian aluminum and an American automaker may pay more for metal. Tax Canadian parts and the cost of assembling an American vehicle can rise.<\/p>\n

AI needs power. Canada has it<\/p>\n

Artificial intelligence is driving a surge in electricity demand. Canada supplied 85% of U.S. electricity imports in 2023, according to the Canada Energy Regulator, and Carney says the country needs to double the capacity of its electricity grid by 2050 through major hydroelectric and nuclear projects.<\/p>\n

Carney said Canada could help the United States \u201cmeet exploding demand to power AI.”<\/p>\n

Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.<\/p>\n","protected":false},"excerpt":{"rendered":"TORONTO, ONT \u2013 U.S. President Donald Trump says his country does not need Canada. But every day, roughly…\n","protected":false},"author":2,"featured_media":184270,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[525,17,1797,3178,162,4079,16551,111,29484,218],"class_list":["post-184269","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-business","tag-canada","tag-daniel-beland","tag-danielle-smith","tag-donald-trump","tag-doug-ford","tag-jason-kenney","tag-mark-carney","tag-peter-hoekstra","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/184269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=184269"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/184269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/184270"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=184269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=184269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=184269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}