- Experts warn that an escalating trade war over oil and gas tariffs between the United States and Canada could severely damage both nations' economies.
- Canada holds significant energy leverage over its neighbor, supplying 20 percent of daily U.S. crude oil consumption and 99 percent of its natural gas imports.
- Energy tariffs would likely drive fuel prices sky-high for American consumers, worsening the cost-of-living crisis ahead of midterm elections.
- Canadian leaders are divided on using energy levies as leverage, with some urging caution and others suggesting retaliatory measures to defend against U.S. duties.
- Analysts emphasize that disrupting the deeply integrated energy grid would inflict lasting damage on long-standing bilateral trade relations.
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