Canada's Oil Industry in Peril Under Trump's Tariffs Threat
Canada's oilfield drilling and services sector is already showing signs of slowing due to U.S. President Donald Trump's threatened tariffs, triggering fears that an expected industry rebound could stall if such levies go forward. The Canadian drilling sector collapsed between 2014 and 2020 due to sustained low oil prices and reduced production during the COVID-19 pandemic. Activity has improved since 2020, but Trump's threat to impose a 10% tariff on the 4 million barrels per day (bpd) of Canadian crude imported into the U.S. could upend that, industry representatives said.
- The vulnerability of oilfield service companies to market volatility highlights the need for more robust supply chain management and diversification strategies in this sector.
- What long-term implications will a sustained tariff threat have on the global oil market, particularly if Canada responds with its own retaliatory measures?