Jan 13, 2025, 9:24 PM
Jan 13, 2025, 9:24 PM

Alberta's premier refuses to halt energy shipments to the US amid tariff threats

Highlights
  • Danielle Smith emphasized the ownership of oil and gas resources by the provinces, particularly by Alberta.
  • Trump’s proposed tariffs are part of economic coercion efforts that could harm both countries.
  • Smith advocates for maintaining a cooperative trade relationship rather than resorting to threats.
Story

In early January 2025, during a press conference in Florida, Danielle Smith, the premier of Alberta, Canada, expressed her opposition to halting energy exports to the United States in response to upcoming tariffs threatened by U.S. President-elect Donald Trump. Smith, who had just attended a gathering at Trump's Mar-a-Lago resort, emphasized that oil and gas resources are owned by Alberta and highlighted the potential consequences of stopping these shipments, which could severely impact U.S. states such as Ontario and Quebec reliant on Alberta's energy. Trump’s proposed 25% tariffs on Canadian products are part of a broader economic strategy that includes coercive tactics to influence Canadian policies, prompting concerns about the relationship between the two nations. Smith criticized Trump's rhetoric, stating that it undermines true partnerships, particularly when the U.S. benefits significantly from Canadian resources, especially oil. With Alberta exporting around 4.3 million barrels of oil a day to the U.S., this trade relationship is crucial for both economies, as the U.S. consumes approximately 20 million barrels daily. Amid these rising tensions, Smith's comments reflect a desire to maintain constructive dialogue rather than resort to threats or retaliatory measures. Canadian Foreign Affairs Minister Melanie Joly has indicated that Canada might impose tariffs on specific U.S. goods if Trump's tariff plans are enacted, but Smith cautioned against engaging in retaliatory economic warfare. She termed it essential to focus on sanctions that can be realistically executed. Additionally, Smith raised concerns over the political landscape in Canada, citing Prime Minister Justin Trudeau's resignation, which has created a power vacuum and hampered Canada’s negotiating power with the Trump administration. Smith asserted the necessity for prompt elections to secure a new leadership that could engage effectively with the U.S., stating that both nations have a mutual interest in sustaining a tariff-free relationship for their mutual benefit.

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