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No indication Trump will back down on tariffs, but retaliating not the answer: Smith

Darpan News Desk The Canadian Press, 13 Jan, 2025 10:58 AM
  • No indication Trump will back down on tariffs, but retaliating not the answer: Smith

Alberta Premier Danielle Smith, fresh off a weekend visit with U.S. President-elect Donald Trump, says if Ottawa uses an energy embargo to combat Trump's promised tariffs, it would spark a "national unity crisis."

"Oil and gas is owned by the provinces, principally Alberta, and we won't stand for that," Smith told reporters in a virtual news conference Monday.

Foreign Affairs Minister Melanie Joly hasn't ruled out an energy embargo in response to Trump's promise to impose punishing 25 per cent tariffs on Canadian products.

Smith said the federal government shouldn't be making "empty threats," and it's not Joly's call to make. She said cutting off pipeline supplies through Michigan would choke key supply to Ontario and Quebec.

Should Ottawa move to cut off the exports, "they will have a national unity crisis on their on their hands at the same time as having a crisis with our U.S. trade partners," Smith said.

Alberta's premier said Canada needs to be prepared for tariffs to come into effect Jan. 20th, Trump's first day in office. "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," she said.

On the weekend, Joly said Canadians need to "be ready" for economic threats, saying all leaders need to put Canada first and show a united front.

"We have to be very realistic, very pragmatic, and we have to be ready, because something we can't do is not to take president-elect Trump at his word. Because when he says something, he usually does it," Joly said Sunday on CBC's "Rosemary Barton Live."

She went on to say Ottawa is pursuing a strategy to engage the incoming U.S. administration through measures that include a new border plan, developing military alliances and co-operating on energy issues. 

"And at the same time, we're working on a retaliation plan," said Joly.

"I can't go into the details of that retaliation plan, because I think it would be a bad strategy. But what I can tell you is everything is on the table."

Smith visited Trump at his Florida home over the weekend as a guest of Canadian businessman and television personality Kevin O'Leary.

Smith will be attending Trump's inauguration next week. She has been on a diplomatic offensive of late, meeting with American elected officials and appearing on news media south of the border. She has argued that the tariffs would harm both Canadians and hit American consumers, particularly with higher gas prices at the pump.

Smith said Monday the incoming president's biggest irritant is the trade imbalance with Canada, and says she expects Trump's promised tariffs to remain in effect until it's solved.

"I think the solution is that we find ways to buy more American goods and that seems to me to be the very logical step that we should take. So I'll put that on the table," she said. Smith and other premiers are expected to meet with Prime Minister Justin Trudeau to discuss the issue on Wednesday.

Alberta NDP Leader Naheed Nenshi said in a social media post Monday that he hopes the premier's attempts at diplomacy will be successful, but says the incoming U.S. administration has levied an existential threat against all Canadians. 

"The danger in freelancing is that Alberta becomes isolated, irrelevant, or, worse, used as a pawn in a bigger game. Only by working together can we ensure Albertan and Canadian interests are protected," he said.

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