Canada’s oil windfall could offset tariff losses

Higher oil prices may help cushion the Canadian economy from the cost of U.S. tariffs, according to a CBC analysis of recent market and geopolitical developments. With Brent crude rising back toward US$100 a barrel amid renewed conflict in the Middle East, Canada’s oil sector is seeing stronger revenues that could support federal and provincial finances. The article says tariff measures affecting about $27.6 billion in Canadian exports have weighed on growth, but gains from oil exports may partially or fully offset those losses. Alberta and Newfoundland and Labrador are already benefiting from stronger energy prices, while the federal government could also receive more tax revenue. The impact is uneven across the country. Energyproducing provinces stand to gain, while manufacturing and transportation sectors face higher costs from more expensive fuel and inputs. Analysts cited in the article say the overall effect on GDP depends on how long oil prices remain elevated and how trade flows adjust.