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In the wake of U.S. President Donald Trump’s tariff threats, Canada is proposing to form a new trade alliance with America that would focus on %Energy and %CriticalMinerals.

Jonathan Wilkinson, Canada's Minister for Energy and Natural Resources, proposed the trade pact while on a visit in Washington, D.C. to meet with U.S. government officials and business leaders.

The proposal comes after Trump threatened to impose 25% tariffs on most Canadian goods entering the U.S.

While Trump has delayed the tariffs by 30 days, Wilkinson is calling for the U.S. and Canada to establish an “energy and critical mineral alliance” that will lead to economic security for both countries.

“Such an alliance would enable the United States and Canada to achieve our shared vision for affordable energy bills for families, strong and secure economies, and North America as the world's dominant energy supplier,” said Wilkinson in a speech.

Wilkinson also said that he is “very hopeful” tariffs can be avoided, and he sees his proposed trade alliance as a path toward duty-free trade between Canada and the U.S.

The tariffs, originally supposed to take effect on Feb. 4, were expected to have a significant impact on both countries, which rely on each other for commodities trade in areas ranging from crude oil and agriculture to industrial metals and minerals.

Wilkinson said that it is in the U.S. interest to have a critical minerals partnership with Canada.

“Canada supplies significant quantities of critical minerals, including %Germanium, %Zinc, %Nickel, %Copper, and %Graphite. These are the building blocks for a range of American economic sectors, including defense,” he said.

On the energy front, Wilkinson highlighted the integrated oil pipeline system running between Canada and the US, noting that Canada supplies America with four million barrels of crude per day.

It remains to be seen if Trump will impose tariffs on Canadian imports once the current 30-day pause expires at the beginning of March.