Why Canada can’t leverage oil like China did rare earths, Pg7

Key Highlights:

• U.S. President Donald Trump threatened to halt the opening of the Windsor-Detroit bridge until Canada compensates the U.S.
• Mark Carney criticized the erosion of the rules-based order at Davos, advocating for middle powers to unite.
• In 2024, the U.S. sourced approximately 60% of its crude oil imports from Canada.
• 95% of Canada's crude oil exports were directed to the U.S. in 2024.

Detailed Insights:

• The U.S. previously imposed tariffs on China, leading China to leverage its dominance in rare earths as a bargaining chip.
• Canada, as the largest foreign supplier of energy to the U.S., theoretically possesses leverage through its crude oil exports.
• Geographical constraints necessitate Canadian oil pipelines to pass through the U.S. to reach its eastern provinces, intertwining the countries' energy infrastructure.
• Northern U.S. states like Montana and Maine heavily rely on imports from Canada, but their overall import volume is insufficient for significant leverage.

Key Concepts Involved:

• Rare Earths: A set of seventeen metallic elements crucial for various modern technologies, including electronics and renewable energy.
• Tariffs: Taxes imposed on imported or exported goods, often used to regulate trade or protect domestic industries.
• Rules-based Order: An international system where countries adhere to agreed-upon rules and norms in their interactions.