After making shocking comments suggesting that the U.S. should annex Canada, President-elect Donald Trump has once again stirred controversy. During a speech at Mar-a-Lago, he claimed that the U.S. does not need anything produced by Canada. However, this assertion of “resource independence” quickly sparked dissatisfaction among Canadian officials. Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, strongly refuted the claim, calling it “simply false.”
Wilkinson emphasized that Canada plays an indispensable role in supplying critical resources to the United States, including crude oil, uranium, potash, and key minerals. He noted that the U.S. currently has no viable alternatives to Canada for many of these resources.
In December 2024, John Passalacqua, the CEO and Director of First Phosphate Corp. (CSE: PHOS, OTC: FRSPF, FSE: KD0) , provided a detailed overview of the significant results of the Bégin-Lamarche PEA during an interview with METALS 100. First Phosphate is dedicated to extracting and purifying phosphate in mining areas in Quebec, Canada, with plans to vertically integrate directly from the mine source into the supply chains of major North American Lithium Iron Phosphate (“LFP”) battery manufacturers, ensuring a stable supply of these materials.
The trade relationship between the U.S. and Canada is one of the largest bilateral trade partnerships in the world, with annual trade reaching nearly $1 trillion. Energy and metals constitute a significant portion of this trade. According to the U.S. Energy Information Administration, Canadian crude oil and electricity make up 60% and 85% of the respective totals of U.S. imports. The U.S. consumes approximately 20 million barrels of crude oil daily, with about a quarter of that coming from Canada.
Canada is also the largest supplier of steel, aluminum, and uranium to the United States and provides 34 of the critical minerals and metals listed as essential for U.S.
Wilkinson highlighted the crucial role Canadian resources play in supporting the U.S. energy and defense sectors. For example, the U.S. nuclear power industry heavily relies on Canada’s uranium supply. With no domestic uranium production of its own, the U.S. depends almost entirely on imports, with roughly one-quarter of its uranium needs supplied by Canada, much of it sourced from high-grade deposits in Saskatchewan.
Meanwhile, the U.S. Department of Defense has invested in Canadian projects to secure alternatives to Chinese-supplied critical minerals such as cobalt and graphite. Last December, China tightened regulations on the export of key materials like gallium, germanium, antimony, and superhard materials. China also imposed stricter end-user and end-use scrutiny on graphite exports. In this context, Canada is seen as a potential key partner for the U.S. in securing critical metals.
In response to Trump’s tariff threats, Canada has hinted that it is reviewing the possibility of imposing export taxes on products like uranium, oil, and potash. Earlier, Trump had proposed tariffs as high as 25% on goods imported from Mexico and Canada. However, analysts suggest he might exempt commodities such as oil and uranium and instead focus on manufactured goods.
