Trump tariff threats are pushing Canada’s largest oil producer to break its dependence on the U.S.
The Suncor Energy Refinery is seen during extreme cold weather in Edmonton, AB, Canada, on Feb. 3, 2025.
Artur Widak | Nurphoto | Getty Images
HOUSTON — The deeply integrated North American oil and gas market stands at crossroads, with Canada’s largest oil producer warning that it will diversify its exports away from the United States if President Donald Trump‘s tariff threats do not end.
Alberta Premier Danielle Smith on Wednesday presented two possible futures for the continent. In one, Canada and the U.S. reach an agreement to create “Fortress North America,” with new pipeline capacity built to support 2 million barrels per day in additional exports to the U.S. market, Smith said at the CERAWeek energy conference.
This will support Trump’s “energy dominance” agenda, Smith said, allowing the U.S. to increase its exports to the global market by backfilling those barrels with imported oil from a neighbor and close ally. It will maintain low consumer prices in the U.S., she said, which is also part of the agenda Trump campaigned on.
Alberta wants to supply the U.S. with the energy it needs to win the race against China to achieve dominance in artificial intelligence, Smith said. “I don’t think any of us want to see a communist, totalitarian regime become a world, global leader in AI,” the premier said.
In the other future, Trump continues to wage his trade war against Canada and Alberta starts looking for oil and gas customers beyond the U.S., Smith said.
Canada is the fourth largest oil producer in the world and Alberta is the country’s biggest producer. Some 97% of the country’s 4 million bpd of oil exports went to the U.S. in 2023 with several European nations and Hong Kong taking the remainder, according to Canada’s energy regulator. Alberta supplied 87% of the oil exported from Canada to the U.S. in 2023.
“There are 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.,” Smith said.
The uncertainty caused by Trump’s tariff threats has already forced Alberta to start “looking at more opportunities to get more barrels off our borders besides the United States,” provincial energy minister Brian Jean said Tuesday.
Alberta is in active discussions with South Korea, Japan and European nations about shipping oil exports to those countries, the energy minister said. “The truth is we’re looking in every direction right now except the United States in relation to our priorities,” Jean said.
Canada looks to Europe, Asia
Trump’s tariffs have roiled financial markets and caused confusion among investors over the past week. The president on Wednesday imposed 25% tariffs on steel and aluminum imports from Canada. He has paused until April 2 penalties on Canadian oil and gas as well as duties on other goods that are compliant with the trade agreement that governs North America.
The Trump administration has not provided clarity on how much of Canada’s energy exports to the U.S. conform to the trade agreement. Oil and gas that is not compliant would face a 10% tariff. U.S. Energy Secretary Chris Wright declined to provide details when asked Monday by CNBC.
Smith said Wednesday that Canadian oil producers are busy filling out paperwork to ensure that their exports to the U.S. are compliant.
“There was a bit of a paperwork issue that our companies had,” Smith said. “There was no reason to register, and so now there is. I would imagine that they’ve all called their lawyers and they’re in compliance. I wouldn’t expect very much of our oil and gas is tariffed at all.”
But it is unclear whether Trump will proceed with tariffs when his pause expires on April 2. Wright said Monday a deal with Canada that avoids tariffs on oil, gas and other energy is “certainly is possible” but “it’s too early to say.”
“We can get to no tariffs or very low tariffs but it’s got to be reciprocal,” Wright said in an interview with CNBC’s Brian Sullivan.
It will take time for Alberta to pivot to markets beyond the U.S. if the tariffs do go into effect. Nearly all the pipelines in Canada run south to the U.S. Canada only has one pipeline stretching from Alberta to the country’s West Coast in British Columbia, providing access to Asian markets. There are no pipelines that run from Alberta to the country’s East Coast.
Smith said Canada is looking at three different pipeline proposals to its West Coast, at least one pipeline into the Northwest Territories, one into Manitoba, one to the Hudson Bay, and one into Eastern Canada.
“Those are conversations we were not having three months ago,” Jean said of the pipelines. But it took 12 years for Canada to expand its Trans Mountain Pipeline that connects to the country’s West Coast.
Alberta is not interested in taking a page from Ontario’s playbook, Jean said Tuesday. Premier Doug Ford imposed a 25% surcharge on electricity exported to the U.S. in response to Trump’s tariffs. He later suspended the penalty after the U.S. agreed to resume talks.
“We don’t believe that that this is the right way to do it,” Jean said of Alberta’s position. “We want to deescalate the situation.”
Canada has presented the U.S. with several options, the Alberta energy minister said. Jean declined to provide specifics, but he said the Trump administration needs a strong strategic petroleum reserve to achieve its goal of energy dominance.
“It also means that they have to be able to continue to get a good steady supply of product from Canada,” he said.
If the tariffs go do into effect, they will hurt both Canadians and Americans, particularly people who cannot afford a price increase, he said. The price hike will be split “fairly evenly” between U.S. customers and producers in Canada, he said.
“It’s going to be felt by all parties and frankly there’s many people right now […] that can’t afford it,” he said. “We need to think about those people because they’re the less fortunate that truly have no other choice but to buy fuel.”
Jean took a swipe at Trump’s repeated calls for Canada to become the 51st state.
“As long as we’re in charge, we don’t mind,” Jean said. “But the truth is the Republicans would never be elected again.”
Tesla has been forced to reimburse a customer’s Full Self-Driving package after an arbitrator determined that the automaker failed to deliver it.
Tesla has been promising its car owners that every vehicle it has built since 2016 has all the hardware capable of unsupervised self-driving.
The automaker has been selling a “Full Self-Driving” (FSD) package that is supposed to deliver this unsupervised self-driving capability through over-the-air software updates.
Almost a decade later, Tesla has yet to deliver on its promise, and its claim that the cars’ hardware is capable of self-driving has been proven wrong. Tesla had to update all cars with HW2 and 2.5 computers to HW3 computers.
In January 2025, CEO Elon Musk finally admitted that HW3 also won’t be able to support self-driving and said that Tesla will have to upgrade the computers. 6 months later, Tesla has yet to communicate a plan for retrofits to owners.
Tesla is now attempting to deliver its promise of unsupervised self-driving on HW4 cars, which have been in production since 2023-2024, depending on the model. However, there are still significant doubts about this being possible, as the best available data indicate that Tesla only achieves about 500 miles between critical disengagements with the latest software on the hardware.
The situation is creating a significant liability for Tesla, which already needs to replace computers in millions of vehicles, and it may need to do so in millions more.
On the other hand, many customers are losing faith in Tesla’s ability to deliver on its promise and manage this computer retrofit situation. Some of them have been seeking to be reimbursed for their purchase of the Full Self-Driving package, which Tesla sold from $8,000 to $15,000.
A Tesla owner in Washington managed to get the automaker to reimburse the FSD package, but it wasn’t easy.
The 2021 Model Y was Marc Dobin and his wife’s third Tesla. Due to his wife’s declining mobility, Dobin was intrigued about the FSD package as a potential way to give her more independence. He wrote in a blog post:
But FSD was more than hype for us. The promise of a car that could drive my wife around gave us hope that she’d maintain independence as her motor skills declined. We paid an extra $10,000 for FSD.
Tesla’s FSD quickly disillusioned Dobin. First, he couldn’t even enable it due to Tesla restricting the Beta access through a “safety score” system, something he pointed out was never mentioned in the contract.
Furthermore, the feature required the supervision of a driver at all times, which was not what Tesla sold to customers.
Tesla doesn’t make it easy for customers in the US to seek a refund or to sue Tesla as it forces buyers to go through arbitration through its sales contract.
That didn’t deter Dobin, who happens to be a lawyer with years of experience in arbitration. It took almost a year, but Tesla and Dobin eventually found themselves in arbitration, and it didn’t go well for the automaker:
Almost a year after filing, the evidentiary hearing was held via Zoom. Tesla produced one witness: a Field Technical Specialist who admitted he hadn’t checked what equipment shipped with our car, hadn’t reviewed our driving logs, and didn’t know details about the FSD system installed on our car, if any. He hadn’t spoken to any sales rep we dealt with or reviewed the contract’s integration clause.
There were both a Tesla lawyer and an outside counsel representing Tesla at the hearing, but the witness was not equipped to answer questions.
Dobin wrote:
He was a service technician, not a lawyer or salesperson. But that’s who Tesla brought to the hearing. At the end, I genuinely felt bad for him because Tesla set him up to be a human punching bag—someone unprepared to answer key questions, forced to defend a system he clearly didn’t understand. While I was examining him, a Tesla in-house lawyer sat silently, while the company’s outside counsel tried to soften the blows of the witness’ testimony.
He focused on Tesla’s lack of disclosure regarding the safety score and the fact that the system does not meet the promises made to customers.
The arbitrator sided with Dobin and wrote:
The evidence is persuasive that the feature was not functional, operational, or otherwise available.”
Tesla was forced to reimburse the FSD package $10,000 plus taxes, and pay for the almost $8,000 in arbitration fees.
Since Tesla forces arbitration through its contracts, it is required to cover the cost.
Electrek’s Take
This is interesting. Tesla assigned two lawyers to this case in an attempt to avoid reimbursing $10,000, knowing it would have to cover the expensive arbitration fees – most likely losing tens of thousands of dollars in the process.
It makes no sense to me. Tesla should have a standing offer to reimburse FSD for anyone who requests it until it can actually deliver on its promise of unsupervised self-driving.
That’s the right thing to do, and the fact that Tesla would waste money trying to fight customers requesting a refund is really telling.
Tesla is simply not ready to do the right thing here, and it doesn’t bode well for the computer retrofits and all the other liabilities around Tesla FSD.
FTC: We use income earning auto affiliate links. More.
Environment
BYD says its about to launch the ‘largest-scale’ smart driving software update in history
After hitting a major milestone on Monday, BYD claimed it’s about to unleash “the largest-scale smart driving OTA in history.”
BYD preps for the largest-scale software update
BYD announced on Weibo that there are now over 1 million vehicles on the road with its God’s Eye smart driving system.
The milestone comes after it upgraded 21 of its top-selling vehicles with the smart driving tech in February, at no extra cost. Even its most affordable EV, the Seagull, which starts at under $10,000 (69,800 yuan), got the upgrade.
BYD didn’t reveal any specifics, only promising “it is safer and smarter.” The Chinese EV giant has three different “God’s Eye” levels: A, B, and C.
The highest, God’s Eye A, is typically reserved for BYD’s ultra-luxury Yangwang brand, which utilizes its DiPilot 600 smart cockpit with three LiDARs.
God’s Eye B is used for other luxury and higher-end models, including those under Denza, which utilize DiPilot 300 and one or two LiDARs.
The base God’s Eye C system, used for BYD brand models, includes 12 cameras, five wave radars, and 12 ultrasonic radars, all supported by DiPilot 100.
Last week, BYD’s luxury off-road brand, Fang Cheng Bao, launched a limited-time offer for Huawei’s Qiankun Intelligent Driving High-end Function Package. The discount cuts the price from 32,000 yuan ($4,500) to just 12,000 yuan ($1,700).
After selling another 382,585 vehicles in June, BYD now has over 2.1 million in cumulative sales in the first half of 2025, up 33% from last year.
With the “largest-scale smart driving” update coming soon, BYD’s vehicles are about to gain new functions and safety features. Check back soon for more details.
BYD claims it’s “capable of leading the transformation and popularization of intelligent driving” with over 5,000 engineers dedicated to the field. As the world’s largest NEV maker, BYD said it’s committed to transforming the auto industry with safer and more sustainable solutions for global markets.
FTC: We use income earning auto affiliate links. More.
Kia’s electric SUV is a hit in the UK. The EV3 was the most popular retail EV through the first half of 2025, pushing Kia to become the UK’s third top-selling car brand so far this year.
Kia EV3 leads as the UK’s most popular retail EV
The EV3 is Kia’s fastest-selling EV in the UK and a massive part of the brand’s success this year. Kia said the compact electric SUV contributed to its best-ever June, Q2, and first half EV registrations so far this year.
In January, the EV3 “started with a bang,” racing out to become the UK’s most popular retail EV. The EV3 was the best-selling retail EV in the UK and the fourth best-selling EV overall in the first quarter, including commercial vehicles.
Through the first half of the year, the Kia EV3 maintained its crown as the UK’s most popular EV with 6,293 registrations.
The EV3 starts at £33,005 ($42,500) as the ‘brand’s most affordable EV yet.” It’s available with two battery packs: 58.3 kWh or 81.48 kWh, providing a WLTP range of up to 430 km (270 miles) and 599 km (375 miles), respectively.
Kia sold 31,643 electrified vehicles in the first half of 2025. Although this includes fully electric vehicles (EVs), plug-in hybrids (PHEVs), and hybrids (HEVs), it still accounts for over half of Kia’s total of 62,005 registrations.
After opening orders for the EV4 last week, Kia’s first electric hatchback, the brand expects to see even more demand throughout 2025. With up to 388 miles WLTP range, it’s also the longest-range Kia EV to date.
Next year, Kia will introduce the entry-level EV2, which will sit below the EV3 in Kia’s lineup. Kia is looking to add an even more affordable EV to sit below the EV2. It will start at under $30,000 (€25,000), but we likely won’t see it until closer toward the end of the decade.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike