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ENERGY BIG PLAYERS ... MAINLY CHINA, USA, CANADA The Pearl: TRUMP FREAKS OUT as China and Canada´s Shocking Oil Pact Leaves US in The Dust! PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=wRW5naD-4zI Peter Burgess COMMENTARY International trade is complex ... but mostly journalists avoid dealing with its complexity but simply report on little components of the big system. Easy and safe, but not particularly helfful. This video, to its credit, addresses some of the complexity, which is good. I am concerned, however, that there has been substantial use of AI and other forms of technical anhancement. I have been exposed to a lot of different aspects of international trade during my quite long lifetime. I would love to sit-in on some of the high level policy dicussions that must have been going on as the world transitioned from a Biden driven America to one driven by Trump. Interesting times ... but my money is on a Trump enabled maltdown of the US economy, sooner rather than later! I am afraid that the big loser is going to be the people of the USA. The importance of the Canadian push back cannot be overstated ... together with a lot of other countries who do not appreciated being pushed around by an arrogant stupid President Trump! I worry that the USA will find it a lot harder than they expect to get past the damage that Trump is doing! Peter Burgess
TRUMP FREAKS OUT as China and Canada´s Shocking Oil Pact Leaves US in The Dust! The Pearl Apr 30, 2025 53.3K subscribers ... 98,708 views ... 2K likes TRUMP FREAKS OUT as China and Canada´s Shocking Oil Pact Leaves US in The Dust! The U.S. has always puffed its chest when it comes to oil dominance. Well, that might be about to change because of what’s going down between two countries that aren’t even pretending to hide it anymore: China and Canada. You know how Trump has always branded himself as the master negotiator? The one who can “win” deals, bring jobs back, and keep China in check? Well, not this time. Stick around, because we’re diving deep into how this happened, why Canada made this choice, what China wants, and what this means for everyday Americans. Let’s get into it. How this content was made Altered or synthetic content Sound or visuals were significantly edited or digitally generated. Learn more Transcript 0:00 The U.S. has always puffed its chest when it comes to oil dominance. Well, that might be about to change because of what’s going down between two countries that aren’t even pretending to hide it anymore: China and Canada. You know how Trump has always branded himself as the master negotiator? The one who can “win” deals, bring jobs back, and keep China in check? Well, not this time. Stick around, because we’re diving deep into how this happened, why Canada made this choice, what China wants, and what this means for everyday Americans. Let’s get into it. How Trump’s Trade War Set the Stage Out of nowhere, this whole trade war between the U.S. and China breaks out during Trump’s presidency, and suddenly the world’s energy trade game is flipped completely upside down. Before anyone could blink, it went from a few tariffs to a full on economic boxing match with both sides throwing punches. 1:05 At first, Trump hit China with tariffs using something called Section 232 and Section 301. He went after steel and aluminum, and then he added tariffs on 34 billion dollars worth of Chinese goods. And of course, China wasn’t about to sit there quietly. They clapped back hard with their own tariffs on American products. By late 2019, the back and forth had spiraled so much that nearly every single Chinese import coming into the U.S. had some kind of extra cost slapped on it. Like, can you believe the average tariff on Chinese goods jumped from just 3 point 1 percent to almost 20 percent? That’s wild. And China? They weren’t playing either, they raised tariffs on U.S. products from 8 percent to a whopping 21 point 1 percent. Like, what even? 2:01 Trump always said he’d make America energy independent again—but now, it looks like China and Canada just ran off and made their own energy club, and guess what? The U.S. wasn’t invited. What kind of deal did they strike? Why now? Could this be the moment the U.S. loses its grip on global energy control? Or is there something even more shocking behind the scenes? Sit tight and don’t skip a second, because the story behind this deal is deeper, messier, and far more important than most people realize. And what Trump says next? Oh, you're going to want to hear that. Now here’s where it gets really interesting, because this whole mess started messing with oil and energy markets. And let’s be real, when energy is involved, the stakes get high fast. In August 2018, China put a 25 percent tariff on American crude oil. A full quarter of the price, 3:00 just slapped on like that. They hit pause on it for a little while during trade talks, like they were testing the waters or trying to play nice. But by September 2019, they were like, “No,” and brought it right back. And this back and forth? It created all kinds of confusion. Nobody knew what was going to happen next, and for businesses, especially oil producers, that kind of instability is a nightmare. They couldn’t plan, they couldn’t invest confidently, and it just messed with everyone’s groove. Think about it: before the trade war, China was one of the U.S.’s biggest energy customers. Like, seriously, they were buying half a million barrels a day of American crude oil. That’s a lot of oil. But once those tariffs hit? That number dropped like crazy—by more than 75 percent. And it wasn’t just oil. The whole energy relationship between the U.S. and China started crumbling. Before all this mess, 4:03 things were actually going really well. Between 2016 and 2018, American exports of crude oil, LNG (that’s liquefied natural gas, by the way), and petroleum products to China were booming. We're talking about 8 point 5 billion dollars a year. That’s not small change. And for U.S. energy companies, especially those benefiting from the shale revolution, China was this golden opportunity—a growing market hungry for fuel. And here’s where it gets even messier. Chinese state owned companies, the big players who handle most of China’s energy imports, got what was basically a giant memo saying, “Hey, diversify. Don’t depend on the Americans anymore.” So what did they do? They started looking elsewhere. And just like that, U.S. energy exports to China nosedived. Other countries, seeing the opening, jumped in like, “Oh hey, 5:04 need oil? We’ve got you.” It was a free for all. By 2020, things were just sad. Chinese imports of American crude oil were down by over 86 percent compared to the good old pre trade war days. And then there was that whole “Phase One” deal that Trump’s administration signed in January 2020, where China promised to buy more American energy. Sounds good, right? But did they follow through? Not really. They bought less than 40 percent of what they said they would. Meanwhile, American energy companies were getting hit from all sides. Big pipeline projects that were supposed to deliver oil to Gulf Coast export terminals? Delayed. Or worse, canceled. Storage facilities were built in anticipation of major exports—and then sat half empty. Fewer tankers 6:01 made the U.S. to China trip, which meant less business all around. It was a domino effect. And you know who was quietly smiling in the background through all this chaos? Canada. The Sudden Rise of Canadian Oil in Asia Canada, of all places, is suddenly winning big in the global oil game. Like, quietly and without too much noise, they’ve become this unexpected star in the energy world. People just saw Canadian oil as that thick, hard to deal with stuff from the oil sands, and now look at them—shipping boatloads of crude straight to Asia like it’s nothing. Who would’ve thought? The twist in the story came when China, out of nowhere, decided to pretty much ditch American oil almost completely. We're talking a massive 90 percent drop in U.S. crude purchases. It left this massive gap in China’s supply chain, and guess who was just sitting 7:04 there with the exact kind of oil China suddenly needed? Yep. Canada. Timing really is everything. So here’s what went down. Chinese refineries—those big, super modern ones that can handle heavy, high sulfur oil—started hunting for a new source, because they couldn’t rely on the U.S. anymore (thank you, trade war). And Canadian oil just happened to check all the boxes. It’s dense, it’s heavy, it’s cheaper compared to Middle Eastern oil, and it’s available. So what did the Chinese do? They went all in. Imports from Vancouver hit a record 7 point 3 million barrels in one month—March, to be specific. And from the way things are going, that number might just be the start. Honestly, if you blink, you might miss Canada turning into the new go to energy partner for Asia. But wait, it gets better. PetroChina, which is 8:05 massive, signed this long term deal with Canadian Natural Resources Ltd. Ten years, 100,000 barrels a day, starting July 2024. Like, this isn’t a casual one time purchase. This is “let’s put a ring on it” level serious. China is basically saying, “We trust you, Canada. Let’s make this official.” And what makes it even juicier is that this deal gives China a much cheaper alternative to Middle Eastern grades like Basrah Heavy from Iraq, which, by the way, are crazy expensive now because the Dubai benchmark is up. So yeah, Canada swooped in just when China was looking for a new BFF in the oil world. And let’s be real, China isn’t putting all its eggs in one basket anymore. With tensions rising globally, they’re making sure their energy supplies are diversified. 9:01 No more over relying on Russia or the Middle East. Canada is now part of the inner circle. Now, let’s talk about this Trans Mountain Pipeline Expansion—because this is the real game changer. You know how sometimes one small thing unlocks a whole new level? That’s exactly what this pipeline did. It went from carrying 300,000 barrels a day to 890,000. That’s almost triple the capacity. Can you even imagine the engineering behind that? They added 980 kilometers of new pipeline and upgraded nearly 200 kilometers of the old one. Total cost? A whopping 21 point 4 billion. But every cent of that is already starting to show returns, because now, Canada can get its oil directly to the Pacific and out to Asia without relying on U.S. ports. That’s major. 10:01 The results were almost instant. Canadian crude exports by tanker jumped 59 percent—like, just boom, overnight. Vancouver, which used to be this quiet little player in the oil game, suddenly became the center of attention. It used to handle maybe 10 to 15 percent of the exports, and now? Sixty percent. Vancouver is basically the new star of Canada’s energy exports. And because of how streamlined everything has become, Chinese buyers are loving it. Ships from Alberta to China’s Ningbo port now take only 23 days. Compare that to the 35 to 40 days it takes from the Gulf Coast, which has to go through the Panama Canal—talk about a major time (and money) saver. You think those Chinese companies aren’t noticing the savings on inventory and logistics? Please. They’re thrilled. Oh, and the port upgrades? That’s another 11:04 layer to the glow up. Canada invested another 2 point 1 billion dollars to totally revamp its Pacific export infrastructure. The Westridge Marine Terminal in Burnaby, British Columbia, can now handle Aframax tankers, which are these massive ships that can carry up to 800,000 barrels at once. Loading times have gone from 48 hours to 28 per ship. That means more ships loaded faster, fewer delays, more money coming in. It’s all clicking into place. Remember when Trump promised “America First” on energy? Well… that promise just took a hit. Big time. China and Canada came together for a jaw dropping oil pact, and guess who got left standing in the cold? Could this be revenge? Or a warning shot for 12:00 the next administration? One thing’s for sure: this story is way bigger than it sounds. And if you think Trump’s freakout is just politics as usual, stick around—because by the end, you’ll see why this could rewrite everything you thought you knew about energy, alliances, and global power. The U.S. Oil Industry Left Behind American oil producers are currently getting hit from every possible direction, and the global energy game? Oh, it’s changing fast. What used to be promising markets, like China, are basically ghosting U.S. oil. It’s giving “thank you, next” vibes, and not in a good way. So get this: exports to China didn’t just dip a little. No, they plummeted by 53 percent in 2024. That’s just 217,000 barrels per day now. 13:02 And let me tell you, for the oil folks in Texas and beyond, that’s like losing your best paying customer overnight. I mean, imagine depending on a solid paycheck from a loyal client for years, and then boom—they switch to someone else without even saying goodbye. That’s what it feels like. Sure, the U.S. did hit a record with 4 point 1 million barrels per day on average, but the growth? It’s crawling now. Like, 1 percent growth this year compared to 14 percent in 2023 and 21 percent in 2022. That’s not even a slow clap. That’s... silence. And as if that wasn’t enough drama, Trump decides to drop new tariffs. And let me tell you, the markets did not take that well. Prices for West Texas Intermediate crude dropped like a rock to 58.95 dollars a barrel. That’s the lowest since 2021, and it’s hovering around 60 dollars now. 14:09 And for those producers who need prices to be at least 65 dollars to stay afloat? Yeah, they’re sweating bullets. Some areas even need 96 dollars to break even. Ninety six dollars! And we’re sitting at sixty? You do the math. Meanwhile, OPEC plus—that’s the alliance of oil producing countries that basically control the global tap—decided, “You know what? Let’s pump more oil.” And don’t even get me started on the ongoing trade war, it’s sliced global oil demand growth in half. Half, babe. That’s not just a bad day. That’s an existential crisis for some of these companies. Now let’s talk about the American shale producers because they’re really feeling the heat. These are the folks who drill into rock formations to 15:04 pull oil and gas out, mostly in places like the Permian Basin. And you know what? A lot of them simply can’t survive at 60 dollar oil. New wells need 65 dollar just to break even. And if you're in one of the less “popular” drilling spots, you’re basically doomed unless prices shoot up to 96 dollars. One analyst, Matthew Bernstein, didn’t even sugarcoat it; he said if oil hits 60 dollars, growth is in danger. And if it dips to 50 dollars? Their whole business model is in danger. That’s not a little hiccup; that’s an emergency room visit. And honestly? Some experts think oil prices could actually fall below 50 dollar if these trade tensions get worse. So it’s not just a scary thought—it’s a real possibility. And it’s not like the oilfields are doing great either. They’re ageing. They're tired. They’re 16:03 producing more water and gas and less oil. In some places, for every one barrel of oil, they’re pulling out twelve barrels of water. Like… twelve?! That’s basically fishing for oil in a swimming pool. Even the gas to oil ratios are getting worse, jumping from 3,100 cubic feet per barrel in 2014 to 4,000 in 2024. That means more gas, less oil, and more processing headaches. It’s like everything is going sideways at once. And let’s talk natural gas real quick, because even there, things are bleak. The U.S. just recorded its first ever yearly decline in shale gas production since the year 2000. That’s over two decades of steady rise… and now it’s finally sliding. In the Haynesville region alone, the number of gas rigs dropped to just 33 as of September 2024. That’s a 53 percent drop from January 2023. And guess what? 17:09 That’s the lowest count since the dark COVID days of July 2020. So yeah, that tells you everything. And all of this? It’s not just numbers and charts. These changes ripple through the whole economy. Less drilling means fewer jobs—good paying ones too—and when those go away, local restaurants, diners, hardware stores, everyone gets hit. Small towns that depend on oil workers? They start to struggle. It’s like watching a whole domino effect. Banks feel it too—because a lot of these shale companies are loaded up with debt. And if they can’t pay it back? You already know how that ends. Kirk Edwards, who runs Latigo Petroleum out in Odessa, Texas, literally said, “This reminds me exactly of COVID.” That’s how bad it is. And back 18:06 then, at least they could try to fix things by drilling smarter and faster. But now? Even that’s not enough. It’s like trying to bail out a sinking boat with a spoon. The whole situation feels like déjà vu, but this time the toolbox is empty. And here’s the biggest twist in the whole thing—are you ready? The very policies that were supposed to help American oil thrive are actually hurting it. Trump’s “America First” energy push, which encouraged aggressive drilling, ended up backfiring thanks to those same tariffs and trade battles. Now? Canada is sliding into China’s good graces and filling in the gaps while American producers get sidelined. It’s like being benched at your own game. China’s Tariff Strategy Against Canada 19:04 Canada and China are basically locked in this super tense trade drama, and while everyone’s busy talking about oil deals and flashy tariffs on electric vehicles, there’s actually a much more layered, sneaky, and kind of savage back and forth going on behind the scenes. The way China’s been playing this whole thing, it’s giving major chess master energy. Every move is deliberate, every response is timed perfectly, and you can feel the strategy oozing from it. So here’s how the whole thing kicked off: back in May 2024, Canada decided to slap a 100 percent tariff on Chinese electric vehicles. A hundred percent, girl. That’s not just a little warning tap on the shoulder, that’s a full on economic slap. And it didn’t stop there. Canada also threw on a 25 percent tariff on Chinese steel and aluminum imports, blaming unfair 20:06 trade practices and even tossing in some concerns about the environment. Which, let’s be honest, was probably true, but also very convenient. Now, did Canada do this all on its own? Not exactly. It was pretty clear they were just following the lead of the U.S., who had already taken similar actions. And you know how it goes—when big brother moves, little brother usually follows. But China? Oh, China was not about to just sit there and take that. Nope. By July 2024, they came back swinging, but not in a messy or chaotic way. It was surgical. They hit Canada with tariffs on over 3 point 7 billion dollars worth of exports. And unlike past trade squabbles that usually target just one or two industries, China’s response was more like a pressure cooker, 21:03 tightening the lid little by little across multiple sectors. We’re talking 25 percent tariffs on Canadian metals and minerals, 15 to 30 percent duties on forestry products, and new annoying as heck regulatory hurdles for Canadian energy companies that wanted to do business with China. Like, imagine being a company that’s finally breaking into the Chinese market and suddenly you’re buried in red tape because of politics you had zero control over. But here’s the twist that really shows how strategic China was being, they completely left Canadian crude oil alone. Not a single extra tariff, not a single barrier. Nada. And that’s actually huge. Because it shows that while China’s out here punishing Canada in some sectors, they’re also protecting the stuff that really matters to them, like oil. Even Canada’s own 22:05 Energy Minister, Jonathan Wilkinson, kind of gave it up when he said China seems to be separating its trade frustrations from its energy priorities. And he’s right. That’s not a coincidence—that’s a calculated strategy. China’s saying, “We’re mad, sure. But we’re not stupid. We’re not about to cut off oil just to prove a point.” But while energy got a free pass, guess who got wrecked? Canadian farmers. Ugh, poor folks. They’re honestly the ones feeling the brunt of all this, and it’s brutal. China went hard on agriculture. First, they suspended all Canadian beef imports, just completely pulled the plug on an industry worth almost 600 million dollars a year. Then they hit canola with a 50 percent tariff. Do you know how 23:00 big a deal that is? Canola used to be a 2 point 5 billion dollars export for Canada! And then, because clearly that wasn’t enough, they added these weird new phytosanitary rules for wheat that basically make it impossible to ship, and on top of that, they’re now dragging their feet at ports so long that perishable stuff is literally spoiling before it can even reach shelves. And that’s what makes this so wild. China’s not just targeting any old products, they’re hitting the ones that are easiest to replace. They know they can get beef and canola from other places like Brazil, Australia, or Russia. So they’re using that flexibility as leverage. Smart? Yes. Ruthless? Also yes. And because agriculture is such a big deal in rural Canada, and rural areas 24:00 usually carry a lot of political weight, it’s like China’s hitting where it hurts and where it counts electorally. Think about it: if you're a Canadian politician trying to keep your seat, and your rural voters are losing money by the truckload because of this trade war, aren’t you gonna start rethinking your loyalty to U.S. trade policies? Like, isn’t that pressure kind of the whole point? One Saskatchewan canola farmer, James Peterson, pretty much summed it up when he said, “We’re caught in the crossfire of a dispute that has nothing to do with agriculture.” And that’s the heartbreaking part. These are regular people, not billionaires or diplomats. They’re just trying to keep their farms running, and now they’re stuck in this high stakes economic game they didn’t ask to be part of. It’s giving collateral damage, and it’s not okay. This whole situation honestly feels like déjà vu, because it mirrors what happened between 25:05 China and Australia from 2020 to 2022. Back then, Australia started aligning more with the U.S. on a few political issues, and suddenly, China came down hard on their wine, barley, beef, and coal exports. It was messy, it was calculated, and it forced Australia to start hunting for new markets. So this current drama with Canada? It’s kind of like China pulling out an old playbook and saying, “We can do this all day.” At the end of the day, China’s approach here shows just how much they’ve leveled up in terms of geopolitical and economic strategy. They’re not just reacting emotionally—they’re planning, watching, waiting, and then striking in ways that protect their interests while making sure their message lands loud and clear. And now, 26:06 Canada’s kind of stuck. Like, what do you even do at this point? Do you keep siding with the U.S. and risk your farmers, your forestry industry, and a whole bunch of other sectors taking massive hits? Or do you try to play nice with China again to protect your second largest trading partner and keep the agricultural and energy money flowing? It’s a huge gamble either way, and there’s no easy way out. While everyone’s eyes are on the flashy oil headlines, there’s this deeper, way more intricate story going on that shows just how complicated—and honestly how petty—international trade can get. And the scariest part? The people suffering the most aren’t the ones making the decisions. It’s the folks in the fields, the factories, and the ports who are stuck picking up the pieces. Ain’t that always the way? 27:05 China and Canada signed a shocking oil agreement that caught the U.S. completely off guard, and Trump’s meltdown might be more than just drama… it might actually be a warning. Is this pact just about selling oil, or about sending a message to the rest of the world? Could this signal the rise of a new energy alliance that excludes the U.S. altogether? Or is it a one time stunt that America can easily shrug off? The real answer is buried deep in the deal itself—and trust me, we’re about to uncover it. So stay with us until the end, because this one ends with a twist. What Trump Got Wrong and What Comes Next Trump’s big bold plan to “Make America 28:00 Great Again” by slapping tariffs left, right, and center? It’s wild when you really break it down, because this whole tariff strategy was once hyped up like it was going to save the U.S. economy, right? Like the big comeback move. A power play. But now, fast forward a bit, and it’s honestly a bit of a mess—especially when you look at what’s happening in the global energy space. I mean, can you believe Chinese refineries are now swimming in Canadian oil, just chillin’ while the U.S. is sitting here scrambling with a bunch of questions no one seems ready to answer? And the biggest irony? Trump’s whole approach was supposed to be tough, smart, and all about putting America first. But what actually happened? He kind of turned trade policy into this big clunky hammer, just smashing things without really aiming. You know how sometimes you need a little finesse? Like maybe don’t just bulldoze through complex economic systems with 29:05 zero subtlety? Well, instead of using trade policy like a scalpel to fix things precisely, he used it like a wrecking ball. And here’s the kicker: those tariffs? They’re not paid by China, like he kept saying. American businesses and regular ol’ consumers? They’re the ones who’ve been footing the bill. Yeah. Us. And guess what? Economists have been screaming for ages that these import taxes only make stuff more expensive. Prices go up, growth slows down, and everybody’s mood sours. The markets reacted immediately. Stocks dropped, confidence tanked, and businesses got spooked. It was like watching a really bad group project fall apart in slow motion. Now, here’s the part that’ll really make you want to throw your hands in the air, there were straight up math errors in how they calculated these tariffs. Like, 30:08 actual mistakes. We’re talking basic stuff that ended up multiplying foreign tariffs by four, just because they used the wrong numbers. Instead of using import prices like they were supposed to, they based everything on retail prices. So instead of being “reciprocal” like Trump claimed, the U.S. ended up overcorrecting and imposing tariffs way higher than what was even remotely reasonable. And honestly, isn’t that just the most avoidable disaster? Like, check your math, people! And these missteps didn’t just mess with numbers on a spreadsheet, they had real world consequences. Take the steel tariffs from 2018, for example. They were supposed to bring back steel jobs and boost American industry. But you know what happened? They created maybe 31:00 a thousand steel jobs, but in the process, they killed off seventy five thousand other jobs in industries that use steel. Like, what kind of math is that? That’s not even a trade off, it’s a disaster. And don’t even get started on how it affected high tech sectors. Think AI, data centers, advanced manufacturing—everything became more expensive and harder to build because of equipment shortages and higher costs. It’s like they were trying to build a future with nineteen fifties tools. Make it make sense. Meanwhile, while all this is happening, the energy world is flipping upside down. Canada’s oil is flooding into Chinese refineries like it's a Black Friday sale, and the U.S. is just... watching. Trying to hold onto market share while shooting itself in the foot with its own policies. And the saddest part? The 'Unleashing American 32:03 Energy' campaign was supposed to make the U.S. a global energy superpower. But how’s that going to happen when tariffs are making it harder and more expensive for our own producers to compete? So now, Washington’s kind of in a tight spot, and honestly, they need to start calling this what it is, the biggest tax hike in nearly six decades. That’s not even a political opinion; it’s just facts. These tariffs, especially the ones that are still hanging around, are basically giant taxes that fall hardest on the people who can least afford them. Yale’s Budget Lab even showed that prices in the U.S. are expected to jump by 2 point 3 percent because of this, with the average household coughing up around 3,800 dollars extra. Like, who exactly was this supposed to help again? The clock is ticking, and policymakers need to make some serious decisions. Should they finally 33:03 drop this whole sledgehammer strategy and try something more nuanced? Maybe support specific industries directly instead of nuking whole sectors with blanket tariffs? Or perhaps—just hear me out—maybe it’s time to rebuild some bridges internationally, especially when it comes to China. Because look, while China definitely plays some unfair games in trade, there are smarter ways to deal with it than torching your own economy. Is it really that hard to find a middle ground? With this, we have come to the end of this video. Thanks for watching! If you enjoyed this video, do well to like, comment, and subscribe for more content. To enjoy more thrilling stories, click now on the following video that pops up on your screen.

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