As U.S. President Donald Trump renews his tariff threat, Alberta Premier Danielle Smith says diplomacy, not retaliation, is the best way for Canada to stifle the risk of punishing new trade sanctions.
Smith held a virtual news conference on Tuesday to share her reaction to Trump’s inauguration day — a return to the White House which triggered new concerns surrounding the threat of steep tariffs on Canada.
“We were very pleased that we got a day-one reprieve,” Smith told reporters Tuesday.
“We have a short window, I think, to demonstrate the very positive relationship that Canada and the U.S. have from a tariff-free point of view and why it should remain tariff-free.
“Our best approach now would be to focus on diplomacy and refrain from talk of any kind of retaliatory measures.”
Trump did not follow through on his promise to impose the tariffs on his first day in office but did rekindle his threats to make the new trade penalties a reality.
As Trump signed a stack of executive orders Monday, the returning president suggested his administration would move ahead with 25 per cent tariffs on Canadian and Mexican imports by Feb. 1.
Trump told reporters the sweeping tariffs were necessary due to “vast numbers” of illegal immigrants and fentanyl coming into the U.S. from north and south of the American border, describing Canada as a “very bad abuser.”
The punishing tariffs would be imposed on everything imported from Canada. In return, the Canadian government has pledged to impose retaliatory tariffs of its own on U.S. goods entering Canada.
Trump announced a plan to study alleged unfair trade practices and signed an executive order directing that the study be completed by April 1.
Smith said she was pleased that Trump had decided to refrain from immediately imposing the tariffs but said the threat is still very real.
She said Canada should be promoting cross-border trade and maintaining strong relations with the U.S. Smith said Canadian political leaders must come together to preserve and strengthen our ties with the United States.
Part of Smith’s proposed defence strategy would include new measures to double down on border security and policies to “crack down” on “immigration streams and loopholes” that provide “hostile” individuals access to the states.
She said Canada must also determine how to limit internal trade barriers between provinces to ensure it is less reliant on a single trade partner.
‘A different approach’
Smith spent inauguration day in Washington, in what is expected to be the final leg of an American trip. She and other Canadian leaders have banded together to campaign against the sweeping sanctions and Smith has taken a hands-on approach, meeting with government leaders and Trump himself.
The pair met last week at Trump’s Mar-a-Lago home in Florida on Jan. 11, a conversation Smith described as productive.
The premier’s “Alberta First” approach to tackling the sanctions has been criticized by other Canadian premiers and Prime Minister Justin Trudeau as undermining a united front. She caused controversy over the past week after refusing to sign off on a federal joint statement that every countermeasure is on the table.
During Tuesday’s news conference, Smith reiterated that Alberta won’t tolerate cutting off energy supply to the U.S. or export tariffs on its energy exports.
She said Canada should instead be highlighting the importance of cross-border co-operation within trade, especially for the energy sector.
“We have to find a deal from a diplomatic point of view,” she said. “I don’t know that this particular administration — and this particular president — responds well to threats, especially empty threats.
“If he wants more energy security then you should be talking about how you can provide energy security … this is why I’ve taken a different approach.”
Smith said Alberta is hopeful that there is a deal to be made with Trump, which could include reduced levees or “carve-outs” that would leave certain sectors exempt from the imposition of tariffs.
“I don’t believe in no-win situations,” she said. “But we have to be prepared that, if he is looking at tariffs as a revenue source, that is going to require a bit of a different result from us.”
Smith said Canada’s position in the ongoing negotiations has been complicated by Justin Trudeau’s pending departure as Prime Minister. If the tariff threat becomes overly politicized in the upcoming federal campaigns, the relationship with the returning Trump administration could be easily damaged, she said.
At worst, failed talks could result in a protracted trade war, Smith said.
She said in light of the ongoing change in leadership in Ottawa, Canadian premiers must step up to be a “consistent voice” in the White House.
WATCH | Danielle Smith calls for diplomacy as the best defence:
With U.S. President Donald Trump seemingly holding off on imposing 25 per cent tariffs on Canadian goods, Alberta Premier Danielle Smith spoke to The National’s Adrienne Arsenault about how tariffs could be avoided in the future and America’s reliance on Alberta oil.
Trudeau, meanwhile, is maintaining his stance.
During a news conference Tuesday, Trudeau said that if Trump wants to usher in the “golden age” he promised during his inauguration speech, he’ll need the energy, critical minerals and resources that Canada is ready to provide.
“We are there to be constructive partners,” Trudeau said.
Trudeau said his government’s focus is still on avoiding the penalties — but if that effort doesn’t succeed, Canada will respond in kind and that “everything is on the table” in Canada’s response to any pending tariffs.
“Our response will be robust and rapid and measured, but very strong. The goal will be to get those tariffs off as quickly as possible,” he said.
