Alberta Premier Danielle Smith has warned that incoming U.S. President Donald Trump appears resolute in implementing a sweeping 25% tariff on Canadian exports, a move that could have devastating consequences for Alberta’s economy and Canada’s national unity.
Speaking to reporters on Monday after two meetings with Trump at his Mar-a-Lago resort in Florida, Smith emphasized that Albertans should brace for the tariffs, which she believes are inevitable.
“We need to be prepared that tariffs are coming,” Smith said. “I haven’t seen any indication in any of the president’s public commentary or even in the comments that he had with me that he’s inclined to change his approach.”
Smith outlined potential repercussions, including over 50,000 job losses, a rise in unemployment to 7.8%, and the likelihood of a recession that could force the province into a deficit. She called for Alberta to push hard for exemptions, particularly for its oil exports, as part of its strategy to minimize the impact.
“Our job is going to be to work overtime to make the case for carve-outs,” Smith said. “The energy relationship between Alberta and the U.S. is too important to be compromised.”
Smith will meet with federal officials and provincial premiers this week to coordinate a response. However, she cautioned against any retaliatory measures, such as energy export bans, which she believes could deepen divisions within Canada and damage relations with the U.S.
“Any kind of retaliation we do on tariffs hurts Canadians,” Smith warned. “I’m hoping that by talking about the importance of energy, we’ll be able to avoid tariffs on every Canadian product.”
Her comments come at a time of turmoil at the federal level, as Prime Minister Justin Trudeau’s recent resignation has left a leadership void. Smith expressed concerns about Ottawa’s ability to manage the escalating trade tensions.
“I’m very concerned about the leadership vacuum in Ottawa. We need strong federal leadership to protect Canada’s interests,” she said, adding that she hopes to avoid further strain on Canada-U.S. relations in the months leading up to a federal election, expected in the spring.
Smith’s visit to Trump’s Florida estate was facilitated by Canadian businessman Kevin O’Leary, who has proposed building a major artificial intelligence data center in northern Alberta. Alberta has also retained a U.S. public relations firm to lobby lawmakers and advocate for Alberta’s economic interests.
Trump’s tariff plan has been tied to concerns about illegal migration, Canada’s trade deficit with the U.S., and Canada’s defense spending shortfall under NATO. He has also made inflammatory comments about Canada, suggesting economic annexation and mocking Trudeau as “Governor.”
Despite the rhetoric, Smith is focused on maintaining Alberta’s critical $180 billion trade relationship with the U.S.
Alberta NDP leader Naheed Nenshi called for a united national front to counter Trump’s policies. He expressed hope for Smith’s diplomatic efforts but cautioned against unilateral actions.
“The danger in freelancing is that Alberta becomes isolated, irrelevant, or, worse, used as a pawn in a bigger game,” Nenshi said.
Smith is scheduled to attend Trump’s inauguration as the 47th U.S. president on Jan. 20. Meanwhile, she continues to advocate for Alberta’s energy sector and economic stability in what she described as an “existential threat” posed by Trump’s tariff policies.