The imposition of tariffs by Trump on Canada may endanger the export of oil and gas to the US, according to the trade chief.

• If President-elect Donald Trump implements his 25% blanket tariff plans, Canada may consider dollar-to-dollar retaliation or an export tax on Canadian oil and gas.
• Canada's minister of international trade Mary Ng stated on CNBC that imposing tariffs on Canada would increase costs for Americans.
• Ottawa aims to enhance cooperation instead of engaging in reciprocal tariff increases.

If President-elect Donald Trump imposes tariffs on Canadian goods, Canada's minister of international trade, Mary Ng, stated that Ottawa is ready to retaliate with levies targeting the energy sector.

"Seema Mody on CNBC's "Squawk on the Street" was informed by Ng that everything is on the table."

Canada's trade chief refused to rule out an export tax on Canadian oil and gas bound for the United States.

Ng stated that he believes Americans do not want Canada to stop selling electricity, oil, and gas to the US, as many things in New York, including Broadway lights, rely on Canadian electricity.

She stated that imposing tariffs on Canada would increase costs for Americans.

On Monday, Trump will implement a 25% tariff on all Canadian exports, similar to the threat he made towards Mexico, the three parties to the USMCA trade agreement. Additionally, Trump has discussed increasing tariffs on Chinese imports by 10%.

The United States and Canada have an exceptional trade relationship, with Canada being the largest importer of American goods in 2022 and the third-largest exporter to the U.S.

"Additional tariffs on U.S. exports to Canada could be imposed if trade tensions escalate, according to Ng and her team," she said.

The same goes for Canadian goods that enter the United States.

If you're buying something at a supermarket, you can be sure that there's probably some Canadian in it. So, if you're paying $4 today, you might be paying $5 tomorrow, said Ng.

Ottawa is actively seeking to strengthen its trade relationships with countries such as Japan and the European Union in response to the potential threat of a trade war with the United States.

"As Canada's trade ministry, I have always been mandated to diversify, and while it's great to work with America, we also need to pursue opportunities globally, which we are doing."

Trump has previously employed tariff threats to rekindle trade talks with Canada.

In his initial term, Trump put tariffs on Canadian steel and aluminum being exported to the U.S.

Ottawa responded with retaliatory tariffs on American goods such as beef, chocolate, and ketchup.

Canada's selection criteria for imposing additional tariffs on U.S. exports were made public at the time. The government of Prime Minister Justin Trudeau deliberately targeted politically sensitive products, such as those originating from key battleground states and regions with influential representatives in Congress.

The communities that produce or grow the products would feel the brunt of any adverse economic effects resulting from a decline in exports. These communities would then put more pressure on their elected representatives in Washington, including Trump, who was running for re-election, to resolve the tensions.

Canada is working to secure its border with the U.S. to fulfill a key campaign promise made by Trump.

Ng stated that there is a unique opportunity for Canada and the United States to strengthen their economy by collaborating.

Canada's ambassador to the United States, Kirsten Hillman, stated in an interview with the Associated Press on Monday that increasing collaboration with the U.S. could involve purchasing more military hardware from the U.S. Currently, 70% of Canada's military hardware is procured from the U.S., according to Hillman.

Ng informed CNBC that when it comes to acquiring additional military equipment, all options are open, including fighter jets and drones.

Canada is currently undergoing a leadership transition with the resignation of Prime Minister Justin Trudeau and former deputy prime minister Chrystia Freeland.

Canada's finance minister and deputy prime minister, Freeland, announced her resignation due to differences with Trudeau regarding the direction of Canada's trade policy towards the United States.