Canadian officials are seizing U.S. tariffs as more kindling on an already growing fire to develop trade partners east and west—not just south into the U.S.—several said in Houston at the CERAWeek by S&P Global conference.

“I don't think friends do that to friends,” Brian Jean, Alberta’s minister of energy and minerals, said in a panel discussion.

Since taking office Jan. 20, President Trump called for a 25% tariff on all goods from Canada, postponed that, returned with 10% on oil and gas and 25% on all other products, put that on hold, put a 50% tariff on metals, and most recently reduced this back to 25%.

Stephen Lecce, Ontario’s minister of energy and electrification, said on March 11, “There are billions of dollars left on the table [by Canada] every year because we don't move goods east and west. Our preoccupation is north and south.

“… Don't be surprised if you see a lot of [Canadian] trade missions moving beyond North America.”

A renewed trade relationship with the U.S. is in the economic and national-security interests of both countries, Lecce said.

“But there are emerging markets and we're going to be seeking out those markets very intentionally to move our goods there, so we're not beholden to one economy any longer.”

Justin Bourque, founder and president of Alberta-based Âsokan Generational Developments, said that, while “we need to address the current situation with the U.S. right now, … we need to be able to access those international markets.”

He added, “There are a lot of the G7 countries that are really calling for Canada's energy.”

Saskatchewan Premier Scott Moe said Canadian sentiment regarding Trump’s tariffs is “a certain amount of disbelief and shock” and “a little bit of anger.”

The U.S. is not only Canada’s largest trade partner; it is “our largest ally as well,” Moe said.

A saying goes, though, that “‘you can't be angry and smart at the same time.’ And we need to be smart right now.”

The tariff challenge will reopen Canadian discussion of accessing the Pacific Coast, Moe said.

'This is existential'

Meanwhile, among the many confounding curiosities about the tariffs is that the U.S. currently “buys our products at a huge discount and we buy them back at full price,” Alberta’s Jean said.

 Lecce said, “If President Trump's objective is division and [this resulted in intra-Canadian] reunification of the country… I have never seen Canadians more unified. … We almost needed this kick in the butt as a nation to realize that we have mass potential.

“We are disproportionately beholden to one export market, selling products and commodities at a discount.

“And we need, I think now more than ever, to build the energy [coastal export] infrastructure. … This is existential.”

He called it “a nation-building moment for Canada.”

Trump’s “divisional rhetoric is giving [Canadian] governments, finally, the social license to get on with building and building quickly,” Lecce said.

Moe noted that Trump is seeking American energy dominance but this should be “North American energy dominance.”

“It means that you are working together on continental energy security, military security, food security. All of these things have to be in place before you can actually be secure as a nation and secure as a continent,” Moe said.

‘Best days are ahead of us’

Alberta ships 4.3 MMbbl/d of oil, all to the U.S.

Meanwhile, the U.S. exports about 4 MMbbl/d to other countries.

“Without our 4 MMbbl/d, you're [the U.S. is] not going to be able to do that,” Alberta’s Jean said.

“So your energy dominance is directly dependent on Alberta and Saskatchewan's ability to ship to you. … I think a lot of people are not recognizing that.”

Upon getting Canadian oil to the Pacific Coast, it can “help our allies—all of our allies.”

He added, “Maybe we should re-identify who our friends are. We are friends with the United States.”

But the U.S.’ trade issues are with countries “on the other side of the world.”

The U.S. may “treat them differently, but don't punish us for what they're doing.”

Lecce said Canada’s search for additional trade partners “began before President Trump. … We weren't really waiting for this impetus.”

But this moment in Canadian history “is perhaps igniting or fueling our drive to be even more ambitious and to scale up our look-out in the world.”

Alberta’s Jean said, “Do we have momentum? What do I tell my constituents?

"I tell them the most obvious thing: The best days are ahead of us.”

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