Canada's oil windfall may yet wipe out its losses from tariffs

Source: CBC Politics
Date: 2026-09-13 08:00:00.0
Tags: [National, Alberta, Newfoundland and Labrador, Trade, Energy, Economy]

U.S. President Donald Trump's imposition of tariffs affecting approximately $27.6 billion in Canadian products—costing Canada's GDP an estimated 0.5 per cent ($10 billion to $20 billion annually)—may be fully offset by a surge in global oil prices topping $100 US per barrel. Driven by ongoing Middle East conflicts involving Iran and Houthi rebel attacks on Saudi energy infrastructure including the Petroline pipeline, Brent crude has reached nearly $110 US per barrel, generating windfall profits for the Canadian oil industry and bolstering government revenues. Specifically, Alberta has reversed a projected $9.4-billion deficit into a $2-billion surplus, Newfoundland and Labrador anticipates an additional $500 million in coffers, and federal corporate and personal income taxes stand to gain roughly $2 billion for every $10 increase in the price of a barrel of oil.