The United States may soon consider lifting tariffs on Canadian oil and gas imports, as discussions among officials intensify, according to U.S. Energy Secretary Chris Wright.

While speaking at a global energy conference in Houston on Monday, Wright indicated an active dialogue within the Trump administration and with Canadian and Mexican counterparts regarding the politically sensitive tariff issue that has strained U.S.-Canada relations.

Wright responded positively when asked about the prospects of a tariff-free agreement, stating, “That latter scenario is certainly possible. It’s too early to say, but there is active dialogue within the administration.”

Just last week, the Trump administration implemented 25% tariffs on a broad range of imports from Canada, alongside a 10% tariff specifically on energy products. However, these duties have been delayed on items covered under the USMCA trade agreement until at least April 2, leading to confusion over compliance for various energy products.

In an effort to engage U.S. officials and industry leaders, Alberta Premier Danielle Smith attended the CERAWeek conference, emphasizing the vital role of her province’s exports in ensuring North American energy security.

She pointed out the necessity of diversifying access to markets beyond the U.S., potentially targeting Europe and Asia, to mitigate risks associated with the ongoing tariff threats.

Smith expressed relief over the recent pause in tariffs, stating, “The 10% tariff was certainly a lot easier for the industry to manage than the 25%. A 25% tariff would have been devastating and could have forced some U.S. refineries to shut down.”

She believes that U.S. producers and refiners have effectively argued for a more favorable tariff situation, considering the interconnected nature of the North American energy market.

In her advocacy for a zero tariff on this crucial resource, Smith aims to highlight the added value American companies derive from competitive pricing on Canadian oil and gas.

“I hope that once we reach April 2, we can evaluate the implications of any reciprocal tariffs,” she emphasized.

Wright, a former energy executive with a solid pro-oil and gas stance, acknowledged the ongoing debate over tariffs within the Trump administration.

While the ultimate outcome remains uncertain, he assured that discussions prioritize the best interests of American consumers.

As the situation evolves, industry experts and stakeholders will closely monitor developments, including the potential implications of tariff adjustments on North American energy dynamics and international trade relations.

The question remains: Will Canadian oil and gas emerge tariff-free from this negotiation? The coming weeks could be crucial.