Canada Must Reconsider East-West Oil Pipeline Amid U.S. Trade Threats, Says Natural Resources Minister

Natural Resources Minister Jonathan Wilkinson has called for a national discussion on reviving an east-west oil pipeline in response to growing U.S. protectionism. Speaking after meetings with American lawmakers in Washington, Wilkinson warned that Canada’s dependence on U.S. markets for energy exports is a vulnerability, especially as President Donald Trump continues to threaten tariffs on Canadian oil.

Trump has delayed imposing a 10% levy on Canadian energy until March 4, but the risk remains if Ottawa does not take further steps to strengthen border security. In response, Wilkinson said Canada must explore new ways to supply its own provinces and reach international markets, especially given the uncertain future of the Line 5 pipeline, which delivers oil from Western Canada to Ontario and Quebec but runs through the U.S. Michigan Governor Gretchen Whitmer has sought to shut down the pipeline over environmental concerns, adding to the risks of relying on American infrastructure.

The prospect of a new oil pipeline comes nearly eight years after the cancellation of Energy East, a project that would have connected Alberta and Saskatchewan oil to refineries and an export terminal in New Brunswick. Wilkinson acknowledged that building new pipelines is complex and requires Indigenous and public consultation but argued that the conversation needs to happen. “Canadians have been shaken by the actions and words of the U.S. President,” he said. “We need to reflect on the long-term implications.”

While Wilkinson sees pipeline expansion as a potential solution, environmental groups like Greenpeace Canada oppose it. Keith Stewart, a senior strategist at Greenpeace, argued that investing in oil infrastructure is outdated, comparing it to “buying a Blockbuster franchise as Netflix is taking off.” Conservatives, on the other hand, blame the Liberal government for blocking past pipeline projects, with Deputy Conservative Leader Melissa Lantsman stating that her party has always supported such “nation-building projects.”

Wilkinson also pushed back against Trump’s claims that Canada’s trade surplus is unfair, noting that if energy exports were removed from the equation, the U.S. actually runs a $50-billion surplus with Canada, largely in manufactured goods. He pointed out that halting oil shipments to California would shrink the trade deficit but would not benefit either country.

With Trump’s tariff threats looming and energy security concerns growing, the debate over whether Canada should revive an east-west pipeline is back on the table. However, whether Ottawa will take action remains uncertain.