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Former Alberta premier Jason Kenney is calling for the province to take a stronger stance as the trade war with the U.S. heats up.
Speaking on CBC Radio’s Calgary Eyeopener Tuesday morning, the former United Conservative Party leader said export taxes on the province’s energy resources should be on the table to put additional pressure on U.S. President Donald Trump.
“I think it needs to be telegraphed that if he does something really reckless in further escalating this, and in ways that are potentially existentially damaging to the Canadian economy, that we do have stronger ways of defending ourselves, such as a prospective export tax on some of our critical exports to the United States on which they rely, including oil, gas and potash,” he said.
Alberta Premier Danielle Smith has said cutting energy exports to the U.S. is a non-starter, saying in a written statement Monday doing so “would be extremely harmful to Canadians and is not a viable option.”
Kenney’s comments come as Canada and the U.S. trade tariff threats after talks of an agreement collapsed last Friday. Trump slapped 50 per cent tariffs on $28-billion worth of Canadian goods, while Prime Minister Mark Carney announced dollar-for-dollar counter-tariffs on Tuesday.
Kenney said he does not support restricting energy exports to Canada’s southern neighbour, but a modest tax could “remind the Trump administration that what they’re undertaking is ultimately counterproductive.”
More than two-thirds of Alberta’s oil is piped to the United States. Kenney said this means it could be a powerful economic tool to leverage amid the heated trade rhetoric.
Calgary Eyeopener12:24Former Alberta Premier Jason Kenney on national unity, and the Canada-U.S. trade relationship
Should the province leverage energy exports in the ongoing trade fight with the United States? Jason Kenney joined us to weigh-in.
“We need to be mindful of where we have the greatest leverage, not to play that card now or not to recklessly threaten things, but quietly to remind them that there are some very damaging ways that we could affect the American economy without negatively affecting our own,” he said.
In addition to energy, he said Alberta and Saskatchewan should also join the other provinces in restricting the sale of U.S. alcohol, saying it’s one step which seems to have registered at the White House.
On her provincial radio show Saturday, Smith said she has no interest in banning imports of U.S. alcohol, and that the federal government should be cautious about retaliatory tariffs.
Kenney to co-chair campaign against Alberta separatism
Kenney’s comments on the trade war come amid news that he and former Alberta premier Rachel Notley are teaming up to make the case for the province to stay in Canada.
The Canadian Chamber of Commerce said the former political opponents are co-chairing its campaign to keep the country united.
Kenney’s UCP defeated Notley’s NDP government in 2019.
The chamber says the pair will lead the campaign in demonstrating that a prosperous Alberta includes Canada.
Kenney said while the alliance once seemed “unlikely,” it is time for those of differing political stripes to come together ahead of the Oct. 19 referendum on whether the province should remain in Canada or hold a second, binding vote on independence.
“We both are proud Canadians — as are the vast majority of Albertans — and I think it’s past time that we all put aside partisanship and put patriotism first.
The chamber says campaign details are still being worked out but it will be driven by discussions between the co-chairs and members.
“With geopolitical and economic uncertainty reshaping global trade and investment, Canada will be only better off with greater economic co-operation — not less,” chamber president Candace Laing said in a statement.
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Kenney said in light of Trump’s recent threats to Canadian sovereignty it is more important than ever to consolidate efforts in support of federalism.
Notley has blamed Smith’s UCP government for foisting what Notley calls a separatist agenda on Albertans.
In a statement to The Canadian Press, she said she and Kenney disagree on plenty of things but agree the referendum is bad for business in Alberta and bad timing during a trade war with the United States.
“We’ll no doubt be standing shoulder to shoulder on this up until we can put it to bed once and for all,” Notley said.
“Then we can get back to respectfully debating issues from opposing sides in a healthy democracy, which is kind of the whole point we’re making here.”
