Prime Minister Mark Carney said Canada will not cut oil and energy exports to the United States as leverage in trade negotiations.
This decision comes as Canada faces the threat of U.S. tariffs of up to 50% [1] on various goods. By refusing to weaponize energy exports, the Canadian government aims to preserve its long-term standing as a stable partner in the North American energy market.
Speaking to the press in Ottawa on July 29, 2026, Carney said that he does not see the value in using energy as leverage in trade talks. He said that the government would not use oil as a bargaining chip because such a move would damage Canada's reputation as a reliable supplier.
"Canadians are reliable, and we will not cut energy exports to the United States," Carney said.
This stance marks a specific boundary in the ongoing trade dispute. While the administration seeks a favorable resolution to avoid the looming tariffs, Carney said that energy remains off the table for tactical maneuvers. He said that the risk of backfiring—particularly given the scale of the potential tariffs—outweighs any short-term advantage gained by restricting oil flow.
However, some observers have noted a shift in the Prime Minister's rhetoric. The Globe and Mail reported that these comments diverge from previous statements where Carney suggested that everything was on the table during negotiations.
Despite that perceived contradiction, the current policy remains focused on reliability. Carney said that the priority is to maintain the flow of energy to the U.S. while addressing the broader trade disagreements through other diplomatic, and economic channels.
“"I don't see the value in using energy as leverage in U.S. trade talks."”
Canada is prioritizing its long-term strategic identity as a stable energy provider over short-term tactical gains in a trade war. By refusing to restrict oil exports, the government is betting that the U.S. will value energy security more than the leverage Canada could gain by creating a supply shock, though this leaves Ottawa with fewer cards to play against aggressive tariff threats.
