Western Standard - March 14, 2025


Smith brings down the house in Houston talking down tariff threat


Episode Stats

Length

5 minutes

Words per Minute

182.89813

Word Count

1,088

Sentence Count

74


Summary

Learn English with Jim Fitterly, Danielle Smith, Susan Bonet, and Paul Broun. They discuss the latest trade tensions between the United States and Canada, including the latest round of 25% tariffs on steel and aluminum and 10% on energy resources.


Transcript

00:00:00.000 So, great discussion group here. Danielle Smith is the Premier of Alberta.
00:00:07.440 Not often noted, Canada's world's fourth largest oil producer in the world, and 85% of Canada's oil comes from Alberta.
00:00:16.800 Jim Fitterly, no, I'm going down, Susan Bonet, going wrong, is the Secretary of Economic Development in Louisiana,
00:00:23.980 and it is noted that 61% of U.S. LNG exports leave the state of Louisiana.
00:00:31.220 And, of course, our friend Jim Fitterly, who is the Chair and CEO of Dow,
00:00:35.440 which is one of the world's great materials and petrochemical companies.
00:00:39.300 So, we're going to have a very good discussion this morning. There's a lot to talk about.
00:00:42.880 I can't resist the fact I'm required to start by asking Danielle, what do you think about tariffs?
00:00:51.300 I don't like them.
00:00:52.600 I would love for us to go back to the kind of tariff-free relationship on most markets that we've enjoyed historically,
00:01:00.260 since the NAFTA agreement, and, of course, what we heard the U.S. President say in his first term,
00:01:07.100 the best trade agreement ever, the USMCA.
00:01:10.560 There's always a couple of little skirmishes that we have in there,
00:01:13.540 but even with the latest escalation and de-escalation of yesterday,
00:01:18.220 one thing I think we should take to heart is there's a few things not included in the list of irritants,
00:01:24.560 and one of them is, of course, energy.
00:01:26.640 And I think that includes not only oil and gas, but also critical minerals.
00:01:32.020 And so I think once we get through this little bit of a rough patch,
00:01:35.840 we can really talk about how Alberta can contribute to U.S. energy dominance.
00:01:40.920 We think that the message is important.
00:01:42.920 We think it's kind of fortress North America.
00:01:45.520 We think that we can backfill with our products in the United States to maintain low consumer prices
00:01:51.120 and also enable the U.S. to export more internationally.
00:01:56.260 And then we're very seized by the discussion about winning the AI race.
00:02:00.800 I don't think any of us want to see a communist totalitarian regime become a world global leader in AI.
00:02:09.540 So we're hoping that we'll be able to contribute to that discussion, too.
00:02:13.000 One of the patrons whose papers is running a daily tally of what's happening to the tariffs.
00:02:17.960 What's the current tariff from oil from Upward?
00:02:21.180 Well, let me check Truth Social because it might have changed in 10 minutes that I haven't been monitored.
00:02:26.720 But I think the current tally is that we have 25% tariffs on steel, 25% tariffs on aluminum,
00:02:33.680 and then those products that do not qualify for the USMCA exemption have 10% on energy resources and 25% on everyone else.
00:02:41.300 So what are your barriers of oil?
00:02:42.980 Any – well, I can tell you China's not dumping into the Alberta market secretly to send oil into the American market.
00:02:49.260 There was a bit of a paperwork issue that our companies had.
00:02:52.060 There was no reason to register.
00:02:53.920 And so now there is – and so I would imagine that they've all called their lawyers and they're in compliance.
00:02:57.980 So I wouldn't expect very much more oil and gases tariffed at all.
00:03:01.300 But I mean, is there a 10%?
00:03:02.700 No, it would be anything that's USMCA compliant has that reprieve until April the 2nd,
00:03:09.300 at which point where – I mean, if you listen to Energy Secretary, Chris Wright,
00:03:12.840 I think he was talking about it going down to zero before the latest round of escalation.
00:03:17.880 So just since you come from the north of that border, what's been the political impact?
00:03:25.000 You're seen as kind of on the right side of the political spectrum.
00:03:28.660 There are others on the left side.
00:03:29.780 Well, the Liberals under – I will be – okay.
00:03:34.120 The Liberals under Prime Minister Justin Trudeau were heading not only to defeat but near wipeouts.
00:03:38.560 That's what we were talking about.
00:03:40.100 And now because of the esprit de corps that has been generated by the attacks,
00:03:44.580 it looks like they might win the next election under their new leader, Mark Carney,
00:03:48.020 who's even worse for the energy sector, in my opinion, than the outgoing Prime Minister.
00:03:54.280 So I think it may have had an equal and opposite effect, counter to what the President was expecting.
00:04:00.940 But it's going to be a very hard-fought election for who we thought was going to be the leader,
00:04:05.980 the new Prime Minister up here, Paul, yes.
00:04:08.160 Is there – has there been a cohesion within Canada and reaction to this?
00:04:13.320 I would say that I'm – maybe I'm good cop and others are bad cop.
00:04:17.380 I have a great relationship with some of the members of the administration.
00:04:21.540 Because I'm more conservative, there's a lot of other issues that we find alignment on.
00:04:26.660 And I would rather get – be diplomatic and try to get to whatever the long-term relationship is going to be.
00:04:32.900 I don't think you blow up a hundred-year trade history with two credible allies over some temporary problems.
00:04:39.580 I think, yes, we have to get through them.
00:04:41.300 We have to identify the issues.
00:04:42.980 But I'm playing the long game here.
00:04:45.020 I want to build two million barrels more per day of pipeline access from Canada to the U.S.
00:04:50.340 So, if we might not be able to start –
00:04:52.260 Two million more.
00:04:52.800 Yeah, we might not be able to start that conversation today.
00:04:55.860 But I hope we can start this soon.
00:04:57.760 One last question, then we'll switch to it.
00:04:59.700 Any greater pressure to have a pipeline capacity to be seen?
00:05:04.080 The – but, see, yes.
00:05:06.020 I mean, one of the – we've got two futures ahead of us.
00:05:10.700 One future is we keep on fighting with our American friends for the next two years.
00:05:14.660 And Congress switches.
00:05:16.820 Now we can't even have a pipeline conversation anymore.
00:05:19.480 And then the four-year term is up and we haven't made any progress.
00:05:22.620 Or we can start that conversation now and get pipelines built.
00:05:26.780 The other option, of course, if we continue to fight for four years, is that there are a number of different pipeline options emerging in Canada.
00:05:35.180 Three different pipeline proposals to the west coast and British Columbia.
00:05:39.000 At least one up north into the Northwest Territories in Nunavut.
00:05:43.600 Churchill, which is in Manitoba.
00:05:45.980 James Bay.
00:05:46.980 And then over on Eastern Canada.
00:05:48.340 So there's at least six or seven projects that are emerging in Canada in the event we're not able to come to a partnership agreement with the U.S.
00:05:56.060 Thank you, Danielle.
00:05:56.820 Thank you, Danielle.