EDMONTON — Alberta Federation of Labour president Gil McGowan claims using Alberta's oil industry as a bargaining chip in trade negotiations with U.S. President Donald Trump will help defeat the Alberta independence referendum by showing that Alberta stands with Canada."I think that that notion that playing hardball, standing up to Trump, or doing anything that is focused on the interests of Canada as opposed to the exclusive interests of Alberta, the notion that those approaches would somehow stoke the fires of separatism-I think it's just wrong," said McGowan in an interview with Energi Media published on Thursday. McGowan's comment came when discussing the 50% tariff on select Canadian products announced by Trump on Monday, which will take effect on August 19. Trump's recently announced tariffs are the latest round of a tit-for-tat trade dispute between the U.S. and Canada that began shortly after Trump took office in January 2025. .The trade dispute dominated discussions among Canadian federal and provincial leaders at their meetings in P.E.I. this week, as some called for Canada to retaliate with crippling measures, including potentially cutting the energy flowing from Canada to the U.S. Premier Danielle Smith has traditionally been opposed to drastic actions, such as stopping the oil flowing from Alberta, and on Thursday she firmly warned against even threatening to do it. "What I would say is, you have to be very careful not to put things on the table that you're not prepared to do, and I'm going to try to prevent Canada from making a very dumb decision of putting energy on the table, because Line 5 goes through Michigan," said Smith on Thursday's episode of Power and Politics. "If you cut off energy to the United States, they can cut off Line 5 and cut off energy to Ontario and Quebec. So no aviation fuel, no diesel, no gasoline, and we don't want to do that.""So, I would just say that it may sound tough to say those kinds of things, but if you cannot do it practically, and you're not prepared to live with the consequences of doing it, don't threaten it." .McGowan pushed back against Smith's approach, though, claiming that even the threat of cutting the U.S.'s energy supply gives Canada negotiating leverage. "With Donald Trump, right now, on the tariff issue, and the future of the trade agreement, CUSMA, it's high-stakes bargaining," McGowan said."And when you're in high-stakes bargaining, you identify your leverage, and you use it, and by taking that leverage off the table right from the beginning, you're sort of begging for an unsatisfactory outcome." Individuals have raised concerns about meddling in Alberta’s oil industry because Trump's tariffs are less impactful on Alberta's economy, and they fear that interfering with their primary industry will add fuel to the independence movement. "We need to dissuade ourselves of this notion that this will fuel the separatists," McGowan said. "I actually think it will be the opposite. If we actually, you know, leave Team MAGA, where our premier seems to want us, join Team Canada.""I actually think that participating as leading players on Team Canada, to defend us and stand up to Donald Trump, that'll actually help defeat the separatist referendum rather than put wind in their sails." .Alberta independence advocates argue the opposite, though, claiming that it shows why Canada needs Alberta, and gives Alberta leverage when they negotiate the terms of exit from Canada. "Imagine we're successful in these referendums, and we're now in a negotiation with the rest of Canada, and particularly Ontario and Quebec," said Alberta independence advocate Keith Wilson in a video. "Alberta will still have that incredibly ace, that ace of spades, that strong playing card, which is our energy economy.""So, when we're negotiating with the rest of Canada for the new terms of an independent Alberta's relationship with the rest of Canada, we will have the leverage of our energy industry in that negotiation."
