'Everything is on the table': Joly won't rule out cutting off energy exports to U.S. in face of Trump tariff threat

CTV QP: Joly urges Canadian leaders 'to be united' Foreign Affairs Melanie Joly urges Canadian leaders to be untied as the country faces negotiations with the U.S.

Foreign Affairs Minister Melanie Joly is not ruling out any countermeasures when it comes to dealing with U.S. president-elect Donald Trump — his threat of significant tariffs on Canadian imports, in particular.

In an interview with host Vassy Kapelos for CTV Question Period, airing Sunday, Joly would not rule out cutting off energy exports to the U.S. in response to those tariff threats.

“What I can tell you is everything is on the table,” Joly said, asked specifically whether the government prepared to cut off energy exports south of the border.

Trump has threatened 25 per cent tariffs on all imports from Canada once he’s back in the Oval Office, a measure that would have devastating effects on both economies.

CTV News confirmed this week that Canadian officials are preparing a list of American products — including steel, ceramics, such as toilets and sinks, and Florida orange juice — that could be targeted with retaliatory tariffs in response to Trump’s threat.

Ontario Premier Doug Ford, meanwhile, has previously threatened to cut off electricity from his province to 1.5 million homes in New York, Michigan and Minnesota as a “last resort.”

Ford later clarified his comments were about standing up for Canadian workers, and this week, he struck a more collaborative tone, pitching an energy plan that would rely on and build upon Ontario’s existing nuclear infrastructure to deliver more power south of the border.

Alberta Premier Danielle Smith, Quebec Premier François Legault and Newfoundland and Labrador Premier Andrew Furey have all said they are opposed to cutting off energy exports to retaliate.

The premiers will meet this week with Prime Minister Justin Trudeau in person to discuss the Canadian response, with plans to travel to Washington, D.C., together next month for a Council of the Federation mission.

Joly said the question of whether to cut off energy exports to the U.S. will be a topic of conversation between the federal government and the premiers, and one she’ll take to Republican lawmakers in the United States during her planned visit to Washington this week.

“Because this is indeed a decision that would be taken by president-elect Trump that would have devastating impacts on Canadians,” she said. “And so, for those who are watching us right now, it is important to understand that the threat is real and we’re acting on it, and that’s why I’m calling every political leader in this country to be on board, because this is not time for division.”

Joly pointed out the threat of tariffs was never levied during the U.S. election campaign, but rather one Trump has introduced more recently.

“We’re reacting to his new rhetoric now,” Joly said.

“We’ve gone through Trump 1.0 administration,” she also said, pointing to tariffs on Canadian steel and aluminum imposed by Trump during his first term as president, and Canada’s “very specific, very surgical” response.

“That’s what we’ll do,” Joly added. “But at the same time, 25 per cent on the entire Canadian economy is extremely important, so that’s why we have to put everything on the table.”

When asked whether Trudeau’s decision this week to resign as Liberal leader and prime minister compromises Canada’s negotiating position with the U.S., because it turned this country’s leader into a placeholder during two critical months in the bilateral relationship, Joly wouldn’t directly say.

“The prime minister took his decision,” she said. “Now I’m looking forward, and we are leading.”

“And what I’m doing is, I will be leading, along with Dominic LeBlanc, the minister of finance, our reaction to what the Americans will be doing,” she also said, adding she continues to engage with Trump’s team.

Joly not running for Liberal leadership, plans to focus on Canada-U.S. relations

Joly also announced Friday she will not enter the race to replace the embattled prime minister as head of the Liberals.

She wrote in a statement posted to social media she “must dedicate every minute of (her) time and all (her) energy to defending the interests of Canadians,” especially in her current role in the face of Trump’s soon-to-be second term in the White House.

She said in her interview with Kapelos she’s been in near-constant contact with members of the incoming Trump administration.

When pressed on certain members of that administration, however, continuing to double down on Trump’s rhetoric around Canada becoming the 51st state, and whether Joly’s efforts are seemingly failing to produce a better outcome for Canadians, Joly said there has to be “a strategy on both sides.”

“That’s the reality,” she said. “My job is to have tough discussions with leaders and folks that sometimes I don’t agree with, and sometimes it is to create also really good working relationships. And that’s what I do.”

With files from CTV News’ Mike Le Couteur