Alberta is banning new purchases of U.S. alcohol but will not cut off or tax existing oil exports to the United States, saying such a move would harm Canada more than the U.S.
Premier Danielle Smith announced the measures Wednesday in response to tariffs imposed by U.S. President Donald Trump, while also outlining Alberta’s plan to double oil production and shift focus toward global energy markets instead of prioritizing U.S. exports.
Alberta rejects calls to cut off U.S. oil
Smith ruled out cutting off or taxing U.S. energy exports, saying it would damage Canada more than the U.S.
"First, doing so will hurt Canadians far worse than Americans should the U.S. retaliate in kind – which they will," she said.
"This U.S. retaliation would most especially hurt those in Ontario and Quebec which still rely on importing fuel from the U.S. largely due to the cancellation of the Energy East pipeline project. Until we have Energy East, cutting off or taxing Alberta crude going south is utterly self-defeating."
She said Alberta would instead pressure U.S. lawmakers and the public to oppose the tariffs.
"Cutting off energy entirely would make Canada the bad guy for Americans. We don’t want that," she said. "We want the Americans to blame their struggles on the actual source of their problems – that being the Trump tariffs."
Smith said Alberta would engage with U.S. governors, Congress members and industry leaders to reverse the tariffs.
"To that end, I’ll be travelling to Houston at the end of this week to continue that push," she said.
Smith: Tariffs are a "betrayal" of Canada-U.S. relations
Smith called the tariffs an “economic attack” and accused Trump of breaking trust with Canada, referencing his “continued talk of using economic force to facilitate the annexation of our country.”
"It is a betrayal of a deep and abiding friendship," she said.
She reaffirmed Alberta’s loyalty to Canada, stating:
"Let there be no mistake – as independent as we are – Albertans are also loyal Canadians."
She said thousands of Albertans have lost their lives fighting for Canada’s sovereignty and that the province would not be coerced by economic pressure.
Procurement shift and Buy Alberta initiative
Alberta is tightening government procurement rules to limit business with U.S. suppliers. Effective immediately, all government agencies, school boards, Crown corporations and municipalities must buy from Alberta or Canadian companies or from countries with free trade agreements that are being honoured.
Alberta will suspend all new purchases of U.S. alcohol, slot machines and video lottery terminals through Alberta Gaming, Liquor and Cannabis (AGLC).
"We’ll just have to drink a bit more B.C. wine and Alberta craft beer and spirits," Smith said.
About 10 per cent of liquor products in Alberta are imported from the United States, with American wines making up a significant share. In 2023-24, Albertans purchased $292 million worth of U.S. liquor products, according to the province.
The Alberta government is launching a “Buy Alberta” campaign and will assist grocers and other retailers in labelling Canadian products to help consumers shift spending toward domestic goods.
Oil exports: Alberta looks to global markets
Smith described Alberta’s oil and gas resources as Canada’s “Trump card” in the trade dispute, stating:
"It is located directly under my feet. It’s called Alberta energy."
She said Alberta’s oil and gas reserves are larger and more accessible than the U.S.’s declining supply.
"Whether the U.S. President wishes to admit it or not – the United States not only needs our oil and gas today, they are going to need it more and more with each passing year."
Alberta has received proposals for nearly a dozen new pipelines to the U.S., but Smith said the province will instead prioritize expanding energy exports to Asia and Europe by securing pipeline access to tidewater.
"The U.S. cannot be anything approaching energy dominant without Canada supplying the oil and gas. It’s just a fact," she said.
The Alberta government is also focused on doubling oil production, in part to meet rising global demand outside of the U.S.
Alberta’s contribution to U.S. energy wealth
Smith said Alberta’s oil exports have significantly benefited the U.S. economy.
"Currently they buy $100 billion dollars a year of highly discounted oil from Alberta – which tens of thousands of U.S. workers and refineries then upgrade into $300 billion dollars of value to sell around the world. We have made a lot of Americans very wealthy."
She said Alberta would like to increase crude shipments to the U.S., but Trump's tariffs make that impossible.
"But until our U.S. friends come back to reality, we will focus our efforts and financial means to export one of the largest oil and gas deposits in the world elsewhere," Smith said.
National unity and economic strategy
Smith called on other provinces to sign free trade and labour mobility agreements with Alberta.
"My government will enter into free trade and mobility agreements with every province willing to do so," she said. "No exceptions. Just free trade and free movement of Canadian workers right across our country."
Alberta has been a longstanding advocate for reducing interprovincial trade barriers. In 2019, the province removed 21 of 27 trade exceptions, including all procurement restrictions, and has since only added two exceptions related to cannabis regulation.
Smith warns of economic hardship
Smith warned Albertans to brace for economic challenges if the tariffs remain in place.
"I’m not going to sugarcoat things. The road ahead is very bumpy," she said.
"If these tariffs continue for months or longer, there will be significant job losses, higher inflation and lost opportunity. And there will be large budget deficits as our government seeks to cushion the blow for Albertans, while ensuring we continue to provide the public services and infrastructure that you and your families rely on."
Despite the challenges, Smith said she is confident Alberta will prevail.
"We always find a way. And we will do so again," she said.
"And oddly enough, this U.S. President’s misguided wish to make our nation the 51st state may ultimately result in our province and country becoming more unified, prosperous and powerful than ever before."
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