Canada Offered to Double Oil Exports to U.S. in Failed Trade Negotiations, Hoekstra Reveals

The High-Stakes Oil Gambit at the White House

In a dramatic revelation regarding the strained trade relations between North American neighbors, U.S. Ambassador to Canada Pete Hoekstra disclosed that Prime Minister Mark Carney offered to double Canadian oil exports to the United States last year. The proposal was presented as a strategic bargaining chip during an October 7, 2025, meeting at the White House, aimed at persuading President Donald Trump to roll back aggressive tariffs on Canadian steel, aluminum, and automotive products.

Internal Tensions and Negotiating Tactics

Speaking at a conference in Edmonton, Hoekstra detailed how the offer to supply an additional three to four million barrels of oil per day nearly caused a rift within the Trump administration. According to the Ambassador, Interior Secretary Doug Burgum and Energy Secretary Chris Wright were so enthusiastic about the proposal that President Trump had to physically restrain them. Hoekstra noted that the President cautioned his cabinet against “crawling across the table” to seal the deal, suggesting that such eagerness would undermine the United States’ negotiating leverage.

The Collapse of the Trade Deal

Despite the massive scale of the energy offer, which would have significantly deepened the integration of the North American energy market, the negotiations ultimately collapsed. President Trump reportedly walked away from the bargaining table later that month, citing an anti-tariff advertisement campaign launched by the Ontario government as a primary reason for the breakdown. While Canada remains the largest supplier of crude oil to the U.S., accounting for nearly two-thirds of imports, the trade deficit remains a point of contention for the Trump administration.

A Future for Cross-Border Pipelines

Despite the failure of the broader trade deal, Hoekstra expressed optimism regarding infrastructure projects like the proposed cross-border connection between South Bow and Bridger Pipeline LLC. This project, which received a presidential permit in April, could eventually facilitate the transport of 550,000 barrels of oil per day. While formal trade talks resumed this spring, progress remains stagnant, leaving the future of Canada’s industrial exports and energy expansion in a state of political uncertainty.