Author: Unknown
Published on: 05/02/2025 | 00:00:00
AI Summary:
A major trade war between the United States and Canada has been averted after Donald Trump agreed to hold off on imposing a 25 percent tariff for 30 days. But anger has erupted in Canada, with people calling for a boycott of US products, and some even calling to stop the export of oil to the country’s southern neighbour. Blocking crude oil flow to the US could inflict an enormous economic cost on Canada. In 1994, the US, Canada and Mexico signed the NAFTA deal. It removed most tariffs between the three countries and included provisions on energy cooperation. Geography also plays a role in how the pipelines are built. If Canada decides to cut off oil supply, there would also be a question mark over how the eastern parts of Canada would get their oil. It raises questions about whether the US would in turn prevent the flow of oil, which flows through US territory, to eastern Canada. Pipelines exported 89.6 percent of Canada’s crude oil. The rest was sent by rail and other networks. Canadian pipeline operator Trans Mountain said deliveries to Asia are likely to increase. In 2022, 79.2 percent of Canada’s refined oil came from the US. The US imports Canadian crude oil, which is refined in the Midwest of the US, and then sold back to Canada and the rest of the world.
Original: 1404 words
Summary: 241 words
Percent reduction: 82.83%
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