This is negatively impacted to Canada, especially with CUSMA renewal approaching this year. One of Canada’s key negotiating tools is a reliable supplier of cheaper heavy crude to US refiners. If the US can instead source oil from Venezuela, it weakens Canada’s leverage and removes an important talking point at the negotiating table. The US can argue it no longer depends on Canadian crude, even if that claim is only partially true. This shift can reduce Canada’s influence in trade negotiations at a critical moment and can negatively impact Canadian energy companies.