Canada uses its critical minerals and energy as leverage in the trade dispute with the US

Canada is taking a tougher stance in its trade dispute with the United States and is considering using critical minerals and energy resources as strategic leverage in negotiations with Washington. Officials in Ottawa say these resources could be directed as a priority to domestic industry or other trading partners.

Minister of Energy and Natural Resources Tim Hodgson said, “I don’t get angry, I get even,” during a tour focused on mining and energy projects. In British Columbia, he attended the launch of construction on the North Coast Transmission Line, a project expected to be completed by 2032 and to double the province’s electricity grid capacity.

The additional energy could power critical-mineral mines and liquefied natural gas export projects to Asia instead of being sent to the United States. Washington relies on Canada for more than 80% of its electricity imports, while Canadian minerals are important to the defense industry, artificial intelligence and advanced technologies.

Prime Minister Mark Carney announced that Ottawa is seeking alternatives to cooperation with the US and said it had concluded approximately 50 international agreements over the past 12 months. Canada has also offered G7 partners priority access to its critical-mineral stocks, raising the economic and strategic stakes of the dispute.