Premier Smith rejects using Alberta energy as weapon in U.S. trade war

Premier Danielle Smith strongly opposed using Alberta's energy resources as leverage in the escalating trade dispute with the United States, warning that such a move would devastate the Canadian economy and permanently damage relations with American refineries.

Speaking Wednesday, Smith called the U.S. trade war a "betrayal" of Canada's alliance. "Make no mistake, the United States has betrayed a special trust between friends and allies," she said, citing Canadian support during 9/11, Afghanistan, and the Second World War. However, she argued that maintaining civil relations with Americans represents the better path to resolving the dispute, which escalated last weekend when Prime Minister Mark Carney walked away from talks over unacceptable last-minute American demands.

Federal and some provincial leaders, including Ontario Premier Doug Ford, have said energy should remain on the table as a retaliatory option. Smith rejected this approach, saying an export levy on oil and gas or similar weaponization would "absolutely devastate the Canadian economy — it would not only extinguish the livelihoods of hundreds of thousands of Albertans, it would economically hobble our friends and neighbours in other provinces."

Smith warned that the U.S. would respond with massive export tariffs on oil and natural gas from the Midwest to Ontario and Quebec. She also predicted that American refineries currently using Alberta's heavy oil would shift to Venezuelan suppliers. "We would lose the U.S. as a customer entirely, and likely forever," she said.

Instead, Smith proposed ensuring more Alberta oil reaches Eastern Canada and reducing interprovincial trade barriers. She also announced the province will convene a ministers' committee Thursday to explore ways of supporting businesses affected by the trade war.

Federal Industry Minister Melanie Joly, visiting Calgary, defended Canada's retaliatory counter-tariffs worth approximately $20 billion on various goods, saying they are necessary to protect Canada's market share. She acknowledged Smith's concerns but said retaliation is required. Smith expressed disapproval of the counter-tariffs, warning they will increase costs for businesses and consumers.