The True Post (Web News) — Alberta Premier Danielle Smith is calling for stronger diplomatic efforts to ease the growing trade tensions between Canada and the United States, arguing that both countries stand to lose from an ongoing tariff war.
Smith said Canadians need to convince U.S. lawmakers, governors and citizens that continued trade restrictions are harmful to both economies.
She argued that Canada cannot win the dispute through confrontation and should instead rely on diplomacy, strategic negotiations and its long-standing relationship with the American public to push for the removal of tariffs.
Smith Calls for Stronger Diplomatic Efforts
Speaking to reporters in Grande Prairie on Wednesday, Smith said Canada should strengthen its diplomatic outreach as trade tensions with the United States continue.
She suggested that governors, members of Congress and ordinary Americans could influence the Trump administration if they become convinced that tariff policies are damaging businesses and communities on both sides of the border.
According to Smith, building support among Americans could become an important part of Canada’s strategy to reduce trade barriers.
Canada Should Rely on Strategy, Not Confrontation
Smith said Canada does not have the economic power to win a trade dispute with the United States through direct confrontation.
Instead, she urged the federal government to adopt a more strategic approach and respond quickly as the situation develops.
She emphasized Canada’s close economic and social ties with the United States, saying those relationships should be used as a diplomatic advantage in efforts to persuade Washington to reconsider its tariff policies.
Smith Opposes Using Oil as a Trade Weapon
The Alberta premier also rejected proposals to use Canadian oil and natural gas as leverage against the United States.
Ontario Premier Doug Ford, former Alberta premiers Jason Kenney and Alison Redford, and Alberta NDP Leader Naheed Nenshi have been among political figures who have discussed using Canadian energy exports as a bargaining tool in the trade dispute.
Smith, however, said she believes such a strategy could cause serious economic damage.
Warning Over Higher Tariffs on Alberta Oil
Smith warned that restricting or imposing additional taxes on Alberta oil exports to the United States could have devastating consequences.
She said Washington could respond by imposing even higher tariffs on Canadian energy products.
The impact could extend beyond Alberta because some Canadian oil reaches Eastern Canada through the United States.
Eastern Canada Could Also Be Affected
Smith warned that using energy exports as a trade weapon could trigger retaliatory measures that would increase fuel prices and potentially create supply problems in Eastern Canada.
She pointed out that Canada does not have the same level of strategic petroleum reserves as the United States, making disruptions to energy supplies a potentially serious economic concern.
According to Smith, such a situation could have significant consequences for economies in Ontario and Quebec.
Concerns Over Jobs and Investment
Smith also argued that using energy exports as a long-term trade weapon could cause Canada to permanently lose the United States as a major market for its oil.
She suggested that the United States could increasingly turn to Venezuela and other lower-cost sources to meet its energy needs.
Such a shift, she warned, could put Canadian jobs at risk, contribute to fuel shortages and potentially affect sectors such as air travel.
Smith also raised concerns about the potential impact of a major economic disruption on the Toronto Stock Exchange and the value of Canadian investments.
Experts Urge Caution
Paul Chascko, a professor at the University of Calgary, said it is too early to predict exactly what would happen if Canada used energy exports as a weapon in the trade dispute.
However, he acknowledged that some of Smith’s concerns could be valid.
He noted that Canada’s lack of large strategic petroleum reserves has historically left the country’s energy sector vulnerable to market volatility.
Chascko said governments should focus on policies that reduce uncertainty in the energy sector and create a more stable environment for investment.
Alberta Wants More Energy Export Options
Smith also called on the federal government to speed up the approval process for a new bitumen pipeline to Canada’s West Coast.
She said Canada needs to develop additional routes for energy exports and reduce its dependence on the United States as its primary market.
She also called for changes to tax policies aimed at encouraging investment in the energy sector.
Call to Remove Internal Trade Barriers
Smith also urged Canada’s premiers to establish a consistent markup system for alcohol products produced within Canada.
She said provinces should work to remove internal trade barriers and focus on practical measures rather than maintaining protectionist policies.
Her comments come as governments across Canada continue discussions about reducing barriers to trade between provinces.
Alberta Creates New Tariff Cabinet Committee
The Alberta government has also established a new tariff cabinet committee to assess the impact of U.S. tariffs and consider possible provincial responses.
The committee will be jointly chaired by Finance Minister Jason Nixon and Minister of Jobs, Economy, Trade and Immigration Joseph Schow.
Smith said the provincial government will also establish an online portal to collect concerns and recommendations from businesses.
A business advisory committee is also expected to be created as Alberta assesses the economic impact of the trade dispute.
Questions Over Smith’s “Team Canada” Position
Elizabeth Smith, a professor at Concordia University of Edmonton, said Danielle Smith is attempting to frame her opposition to retaliatory energy tariffs as a matter of national interest.
She suggested that Smith wants to demonstrate that retaliatory action against Alberta’s oil industry could have consequences for Canada as a whole, rather than affecting Alberta alone.
The comments come amid questions from some political circles about Smith’s approach to the broader “Team Canada” strategy on the trade dispute.
Smith Maintains Position on Alberta Separation Referendum
Meanwhile, Smith has reaffirmed her position regarding a proposed Alberta separation referendum scheduled for October 19.
The referendum question would ask whether Alberta should remain part of Canada or move toward a process that could lead to a mandatory referendum on separation.
Smith’s position puts her in a complex political position as Canada faces growing trade tensions with the United States.
While she is calling for cooperation with the federal government on trade issues, she continues to emphasize Alberta’s interests, the importance of the energy sector and the province’s broader demands for greater autonomy.
The ongoing dispute with the United States is therefore creating both economic and political challenges for Smith’s government, with Alberta seeking to protect its energy industry while also pressing for a stronger provincial voice within Canada.
