Alberta Premier Danielle Smith emphasized a diplomatic approach Tuesday in response to U.S. President Donald Trump's suggestion of imposing a 25 per cent tariff on Canadian imports as early as Feb. 1. Speaking to reporters, Smith underscored Alberta’s energy role and rejected calls for retaliation.
“We think that our best approach now would be to focus on diplomacy and refrain from talk of any kind of threat of retaliatory tariffs. We think that we have a very positive story, a very positive story to tell in Canada,” Smith said.
Energy as Alberta’s Key Bargaining Chip
Smith highlighted Alberta’s energy exports as indispensable to the United States. “Americans consume 21 million barrels a day of oil, they produce 13 million barrels, and they have to get the balance from somewhere. Our particular brand of heavy oil is perfect for their refineries,” she said.
She also pointed to Alberta’s reliability compared to other suppliers. “Venezuela doesn’t have the same scale, and Iran certainly doesn’t align with their values,” Smith noted.
Smith warned of potential consequences if tariffs were imposed on Canadian energy. “If they create a disruption in supply chains, they are disrupting their own refineries, and it’s going to hurt their own workers,” she said.
While discussing diversification, Smith stressed Alberta’s need to reduce reliance on a single market but provided no detailed plans. “We’ve got to take down internal trade barriers between Canadian provinces and start looking at how we can do major nation-building projects to our east and west coast,” she said.
Addressing U.S. Concerns
Smith acknowledged U.S. concerns around border security, particularly the fentanyl crisis. “One of the biggest concerns they’ve raised is fentanyl and the amount of fentanyl coming across the border. We want to make sure that Canada is seen to be a partner in border security,” she said.
She also highlighted Alberta’s ongoing outreach to U.S. officials. “I’ve been talking to governors, I’ve been talking to senators, I’ve been talking to members of Congress to make sure that message is heard,” Smith said.
Rejection of Retaliatory Measures
When asked about Alberta’s refusal to join other premiers in advocating for retaliatory measures, Smith defended her approach. “When you’re a smaller economy, fighting fire with fire doesn’t put out the blaze—it spreads it,” she said.
Smith also countered concerns about Trump’s unpredictability. “The Americans don’t use tariffs as a weapon to create winners and losers,” she said. “They’re using tariffs as a revenue source and leverage.”
Balancing Optimism and Risks
Smith concluded by emphasizing the importance of maintaining strong Canada-U.S. relations. “We know this isn’t over. We know that we’ve got to keep working on it. But I think we have a value proposition for the Americans that no other country in the world has,” she said.
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