The province of Alberta, Canada's oil heartland, is facing tensions as President-elect Donald Trump threatens a 25% tariff on Canadian goods.

This potential levy, aimed at Canada and Mexico, forms part of Trump's push to secure U.S. borders against unlawful immigration and drug trafficking.

Industry leaders and political figures, including former energy executive Dennis McConaghy and the Canadian Association of Petroleum Producers' CEO Lisa Baiton, warn of significant economic impacts.

Such tariffs could lead to reduced oil production in Canada, job losses in Alberta, and potential devaluation of the Canadian dollar.

With 80% of Canada's trade, primarily hydrocarbons, linked to the U.S., these moves threaten integrated economic ties.

U.S. regions heavily dependent on Canadian oil, such as the Midwest, face rising operational costs and higher consumer gas prices if tariffs are imposed.

In response, Canadian Prime Minister Justin Trudeau has organized emergency discussions with Canadian provinces to address the potential repercussions and to negotiate with the Trump administration to avert these tariffs.

Alberta Premier Danielle Smith has emphasized the need to maintain strong bilateral energy ties while considering enhanced border security measures.

The situation unfolds at a time when Trump seeks to boost American energy independence, complicating cross-border trade as the U.S. grapples with domestic and foreign oil reliance.