Canada mentions potash and oil as a possible lever to use in the tariff dispute

Melanie Joly, Canada's Foreign Minister, told Toronto businesspeople on Wednesday that Canada may use its oil and gas exports to negotiate if U.S. import tariffs increase.

Canada has announced that it will impose tariffs worth C$155 billion on U.S. imports, but so far has not indicated whether or not it would reduce the exports of important commodities to the United States.

Canada exports approximately 90% of all its crude oil exports to the United States.

"Of Course, there is oil and gas." "We haven't laid that out yet, guys. We kept it in our game and in our cards as cards we could play if the situation escalated, and the U.S. is aware of that," Joly stated.

Joly said that U.S. potash farmers would be forced to pay C$1.7bn more if Ottawa placed export tariffs on the substance, but did not mention this specifically as a possible card in negotiations.

Alberta, Canada's largest energy exporting province, has said it will never accept a reduction in energy exports to America.

Joly is the minister of Justin Trudeau's government. He will step down on Sunday after the Liberal Party, the ruling party, chooses its new leader.

Both of the main candidates agree that Canada should be tough with U.S. president Donald Trump on his tariffs. (Reporting and editing by Diane Craft, David Gregorio and David Ljunggren)

(source: Reuters)