Smith takes hardest stance yet with U.S., introduces several tariff counter measures

By Collin Gallant on March 6, 2025.

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Premier Danielle Smith issued her strongest message to date against U.S. tariffs during a press conference in Medicine Hat on Wednesday, saying the province holds a “trump card” with vast petroleum reserves, but would also welcome greater integration of the energy sector if the dispute is amicably settled.

“They are unjustified and a clear breach of the North American Free Trade Agreement that was signed by President Donald Trump during his fist term,” she told reporters of a 25 per cent tariff placed on Canadian goods and 10 per cent on energy that came into effect Tuesday.

“It’s broken trust between our two nations in a profound way. It’s a betrayal of a deep and abiding friendship.”

The existence of two categories of tariffs, says Smith, outlines the American reliance on Canadian oil and gas, which could be used as leverage in the larger dispute.

However, that should not include curtailment or taxing exports on this side of the border she said.

That would exacerbate effects in the province of the tariffs, which economists generally agree will likely cause an economic slowdown in Canada.

“I won’t sugarcoat it: the road ahead is very bumpy and if they continue for months or longer, there will be significant job losses and higher inflation,” she said. “But there’s not a shred of doubt in my mind we will prevail.”

Smith’s government had previously announced hopes to expand Alberta’s oil production, and she said Wednesday that could be eventually headed to the United States via new north-south pipeline proposals.

Domestically, she said premiers, federal officials and most Canadians appear open to new internal pipelines for domestic use and delivery to overseas export terminals.

“Canada has a secret weapon … a trump card, so to speak, and it’s beneath our feet,” she said. “Whether the U.S. president wants to admit it, they need our oil and gas today and will need it more and more each passing year.

“We’d love it increase the amount of oil and gas we send south to solve that problem.”

Smith said the province is aware of “several new pipeline proposals” to supply U.S. refineries with Canadian petroleum, and she will travel to Houston next week to discuss the projects with industry and policy makers.

“The U.S. cannot be anything approaching (Trump’s goal of) becoming ‘energy dominant’ without Canada supplying a portion of that oil and natural gas,” she said. “We want to facilitate and partner with U.S. companies and government to achieve that goal,” but “can’t and won’t” as long as the raft of tariffs are in place.

“Until our U.S. friends come back to reality, we’ll focus on efforts and financial means to export one of the largest oil and gas deposits in the world elsewhere,” including domestic use and “multiple pipelines to every coast” for export.

“As soon as the U.S. government is prepared to respect our country and treat us as allies and partners again, we will welcome the opportunity to partner with them to achieve North American energy dominance.”

At home, Smith announced a set of actions to directly respond to U.S. trade action:

– Alberta will impose new procurement rules for government, agency, school board and municipalities to buy products from domestic suppliers or nations in good standing on trade agreements;

– The AGLCC will halt buying U.S. produced liquor and beer as well as video lottery terminals;

– The government will assist grocers with domestic labelling program and encourage voluntary domestic wholesalers and production;

– A “substantial” advertising campaign to help Albertans determine country of origin of products they consider purchasing.

The province will also seek to lower interprovincial trade barriers regarding transportation regulations and professional accreditation.

“We will enter into free-trade and labour mobility agreements with every province that is willing to do so,” she said. “The goal is no exceptions.”

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