It has been heartening to witness the degree of national unity as Canadians steel themselves for the current trade war and insist that our governments stand up to US President Donald Trump. According to many reports, Canada was dangerously close to signing a terrible deal with yet more concessions. But thankfully, at the 11th hour, the US demanded too much and Prime Minister Mark Carney pulled the plug. The federal government has now announced counter-tariffs that will kick in after Labour Day, along with initial support for affected workers and businesses.

But in all likelihood, more will be needed.

For the last year and a half, I have been beating the drum for Canada to impose an export tax on oil and gas shipments to the US. I first wrote about the need for this measure in Canada’s National Observer in February 2025 here, arguing that we need to “hit Trump where it hurts the most – oil and gas.” I’ve restated the need in my personal newsletter on a number of occasions since.

I’ve received a number of thoughtful responses to these pieces, with people raising both concerns and questions. Today, I’d like to offer some follow-up points in reply.

Some worry about how Trump would retaliate against an oil and gas export tax; would he up the ante with still-higher tariffs on these items, or withhold oil shipments from the US to central Canada? Others wonder what the economic cost of the export tax would be and who would bear it. Would the export tax cause too much harm to employment in Canada, or would it result in lower US demand and thus fail to raise the revenues I’ve claimed? And some fear the reaction in Alberta, particularly given the forthcoming separation referendum in that province.

All legitimate questions.........

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