A big problem is that the Canadian dollar value is tied to oil price. But these tariffs are a different sort of oil price than the standard OPEC pricing. Usually if oil prices go down worldwide, demand for the difficult to refine Canadian oil goes down and our dollar devalues.
If price goes up, then we become more competitive and put dollar strengthens. This new situation is different because it will decrease demand and increase the domestic cost of oil, so our dollar will get weaker AND oil costs will go up in Canada. I think. It will be bad, regardless.
A big problem is that the Canadian dollar value is tied to oil price. But these tariffs are a different sort of oil price than the standard OPEC pricing. Usually if oil prices go down worldwide, demand for the difficult to refine Canadian oil goes down and our dollar devalues.
If price goes up, then we become more competitive and put dollar strengthens. This new situation is different because it will decrease demand and increase the domestic cost of oil, so our dollar will get weaker AND oil costs will go up in Canada. I think. It will be bad, regardless.