in a surprising energy policy move Europe has recently turned its back on traditional American natural gas supplies and turned to Canada Trump's tariff threats and the political consequences recently when US president Donald Trump imposed and then suspended tariffs on all Canadian products in Europe and here in the UK businesses are grappling with how to react to a new seen as more hostile trade environment well this week president Trump was not the United States the biggest player offering energy security to Europe many Wonder moreover this preference is not limited to the gas trade European countries which
are accelerating their electrification Drive in the automotive sector want to move away from the United States and strengthen their cooperation with Canada in the field of Next Generation clean energy and green industry this development is interpreted as a major blow for American Energy Giants and the future of the automotive industry so why Canada what could be the motivation for Europe to turn to Canada instead of the United States or more importantly what risks does this shift pose for the United States economy let us examine the issue in all its dimensions in the energy crisis that
started with the Russia Ukraine war and has been felt on a global scale the European Union has prioritized ensuring security of energy Supply at a time when the share of Russian natural gas was rapidly declining the liquefied natural gas exports of the United States seem to be an important option to meet the growing demand in Europe for a while European leaders thought that large-scale liquefied natural gas shipments from the United States were the only way to cut dependence on Russia soon however the high prices that became evident in the market and the sharp trading conditions
of American companies began to irritate European consumers and political actors the United States was never able to erase the impression that it was using energy transfers as political leverage in particular this has fueled the debate on whether friendly countries are being charged restrictive prices inevitably European Union countries in a hurry to meet their urgent natural gas needs while the Russian crisis continues agreed to these conditions in the short term but in the medium and long term the goal of getting rid of the global policing of the United States led Europe to look for other suppliers
this is where Canada came in Long known for its huge reserves of oil and natural gas the country also has a world-renowned reputation for Environmental Protection and green energy transformation the government of Canada is drawing attention with its plans to build new liquefied natural gas terminals as well as investing heavily in renewable resources such as hydroelectricity wind and solar energy the country has also become a potential partner in the extraction processing and supply of a variety of critical minerals and metals demanded by Europe many European companies have begun to prefer Canada's more predictable and Cooperative
attitude to the tariffs protectionism and political tensions with the United States especially considering the European commission's 2030 to 2050 green energy targets Canada has managed to score points with Europe as a clean and sustainable supplier all this has undoubtedly come as an unpleasant surprise for the American Energy Giants for them the European market was a huge Revenue stream and at the same time a giant stage for Global strategic power projection Europe's decision to increase the Canadians share of liquefied natural gas purchases will directly affect American companies liquefied natural gas deals and long-term investment plans high
price policies harsh geopolitical rhetoric and the United States increasingly protectionist domestic politics seem to have brought European leaders to the point of let us try a different path this time Canada on the other hand has stepped up its diplomatic and trade offensive to seize this opportunity although it is stated in official talks that Canada does not yet have the infrastructure for massive liquefied natural gas exports billions of dollars of investment in the coming years will close this Gap as long as the demand from European countries is sustained and long-term contracts are on the table on
the other hand a similar story is taking shape in the automotive and transportation sectors the European Union has accelerated decisions to ban the use of internal combustion engines by 2035 the shift in transportation towards electric vehicles has created new opportunities in battery production charging infrastructure and critical mineral Supply in this context Canada's significant reserves of lithium nickel Cobalt and similar minerals vital for battery production are attracting the attention of European manufacturers Germany France and even Scandinavian countries have started to make supply chain agreements with Canada to secure electric vehicle components the United States of course
also has such minds but environmental regulations and political hurdles in the country make extraction difficult and while Washington has introduced its own electric vehicle incentives it does not offer attractive enough conditions for Europe to invest there this is driving European companies to Canada as a less tense more Cooperative Port of coal as for how the United States reacts to this Washington is of course outraged but official statements are diplomatic Europe has its own Sovereign decisions we always support our allies nevertheless the lobby of American energy companies and the automotive industry are uncomfortable because these developments
mean a loss of Revenue in the medium longterm Shifting the demands of a huge market like Europe to Canada risks weakening the United States in global competition while Europe is locked on its carbon neutrality targets with the green deal and similar environmentally oriented projects it must be acknowledged that Canada is also shining with its stance on green transformation it is hard to say that the United States states which has long had a troubled image in terms of environmental standards can reflect the vision of clean energy cooperation as much as Canada Europe is making this choice
not only because of current prices but also to minimize future ecological and political risks there is also a political side to this development in the post-cold war period the leadership of the United States in the international Arena had started to be questioned and especially with the Trump Administration the America First approach had created a crisis of confidence among European allies although the Biden Administration wants to restore this trust the protectionist measures approved by Congress and the strengthening of those who do not see Europe as a favorable trading partner have started to shake transatlantic relations again
Canada on the other hand despite being a member of both the North Atlantic Treaty Organization and the Group of Seven has a more moderate profile in European public opinion Canada's foreign policy actions are seen as less unilateral and more conciliatory this image Advantage is decisive when it comes to Mutual interests in the energy and automobile sectors the United States also recognizes this picture but it is unlikely to bring about a wholesale policy change in the short term moreover the upcoming elections in the country the Republican Democrat contest in Congress and the ongoing inflation and debt
crisis debates have confused the administration's priorities Canada's energy and mineral export capacity in the coming period will perhaps determine the course of of World Markets until now Canada's oil and natural gas exports have been mostly destined for the United States the country's geographical proximity and huge pipeline infrastructure facilitated the United States market now liquefied natural gas facilities are being built on the ocean Coast to reach both Asian and European markets the fact that German companies are signing long-term natural gas deals with Canada is an important indicator of this European countries which a few years ago
built billions terminals to buy natural gas from the United States are already planning Will Canadian liquefied natural gas come to this situation directly threatens the market share of American liquefied Natural Gas exporters this is because Europe has not entered into long-term binding contracts with the United States but rather short-term spot purchases if Canadian exports come on stream and prices remain competitive why would Europeans prefer expensive American Gas on the other hand demand for oil is expected to fall in the medium-term as electric vehicles gain momentum this is not good news for American Shale gas and
oil companies if Europe together with Canada deepens into green hydrogen lithium batteries or electric car Technologies it will Herald an even greater transformation perhaps in the near future the giant American Automotive Brands will lose significant market share and face higher taxes and tougher emission standards for the European market right now the United States government is announcing massive incentive packages to keep autom makers and Battery factories in the country but this is also feeding trade tensions with Europe American brands that have been reluctant to manufacture in Europe could be squeezed even further by new European Union
laws Canada on the other hand although geopolitically distant from Europe is gaining sympathy among Europeans because it is not as aggressive as the United States in trade agreements one of the critical issues in this new course is environmental legislation and sustainability Europe and Canada are more closely aligned on the Paris climate agreement and other green initiatives Canada in particular is trying to adopt strict policies on the protection of forest assets hydroelectric potential and land areas in the United States however differing state-by-state environmental policies and political wrangling in Washington weaken long-term commitments Europe is not just
thinking about the green transformation in terms of energy Supply it is a massive project that spans every aspect of the economy including industrial processes Transportation buildings and agriculture in such a context working with a partner like Canada becomes more attractive in terms of Green Technology transfer and Joint research and development projects of course all these developments do not open the door to extreme interpretations such as is the United States Empire coming to an end however a reduction in Europe's energy dependence on the United States a shift in the balance of trade and a shift towards
Canada in technology cooperation could be a factor limiting Washington's Global influence this situation has a different dimension in an environment where new Cold War scenarios are being discussed and China United States rivalry is escalating while Europe remains strategically close to the United States on Military and security issues it wants to build more diverse Partnerships on economic and energy issues Canada's role in this strategy is growing for example Canada's close defense ties with the United States on the one hand and its acceleration of green energy projects with European Partners on the other could bring a new
interpretation to United States Canada relations time will tell whether there will be a conflict of interest or whether the United States and Canada will minimize this tension by saying we are in the North American common market after all what is clear is that Europe does not want to be as dependent on the United States as it used to be in the Energy Arena and in the automotive sector this has political and strategic Dimensions as well as economic reasons protectionism debates with the United States High liquefied natural gas prices and a volatile domestic political environment leave
Europe undecided Canada on the other hand offers an alternative that is relatively stable environmentally friendly and more flexible in trade agreements for some this is Europe's second risk of dependence after Russia others see it as exactly the diversification strategy Europe is looking for time and practical results will tell which is right to summarize in this new era where Europe has chosen Canada over the United States the permanent giant liquefied natural gas contracts in Europe expected by American Gas exporters are unlikely to materialize as for electric vehicles while American manufacturers are struggling with Europe's emission policies
positive news about the Canada Europe partnership is increasing how do you think this will play out will the United States take new new steps to lure Europe back can Canada really continue to be a cleaner and more reliable partner we will be watching to see where this Global energy game leads and how new technologies and political alliances take shape do not forget to share your thoughts in the comments you can support us by subscribing to our Channel and liking our video see you again in new developments goodbye
