U.S. border tax unlikely, says Suncor
CALGARY — The head of the largest energy company in the country is discounting the likelihood that the United States, Canada’s largest market for oil and gas, will bring in a border adjustment tax as suggested by some Republican lawmakers.
Steve Williams, CEO of oilsands giant Suncor Energy, said Thursday he sees more positives than negatives with President Donald Trump, adding that promised corporate tax reductions in the U.S. could benefit Suncor’s businesses there.
“My view is that overall, Canada is not at the top of the list for the U.S. for their trade concerns,” Williams said on a conference call with analysts to discuss fourth-quarter financial results.
“I think it’s a very healthy balance and a very healthy symbiotic relationship between Canada and the U.S., so I think the probability of a border tax is very low.”
He said the appointment of former ExxonMobil CEO Rex Tillerson as U.S. secretary of state is encouraging as he is familiar with the oilsands industry and recognizes that Canadian oil and gas is vital to the American economy.
Williams’ view runs counter to some who worry about the damage a border adjustment tax could inflict upon Canada’s energy industry. TD Securities analyst Menno Hulshof said in a report Thursday he estimates Canadian oil and gas producers have lost about $10 billion in stock value because of investors’ border tax concerns that began to take hold in December.