Smith says cutting or taxing oil exports to the US would be a 'disastrous' decision

EDMONTON — Premier Danielle Smith spoke definitively on Wednesday against weaponizing Alberta's oil in Canada's trade dispute with the U.S., saying she could not think of a "more disastrous" policy decision. "Although I understand the need to respond strongly to these tariffs, I cannot think of a more disastrous policy decision than cutting off or taxing Alberta's oil to the United States," said Smith during an address directed to Canadians. "Doing so would absolutely devastate the Canadian economy." .Alberta's premier has consistently opposed using Alberta's oil as a tool of leverage in Canada's trade negotiations with the U.S., and in July she said she would fight to prevent Canada from making a "very dumb decision." Despite Smith's opposition, outside pressure on her to sign off on putting oil on the negotiating table has increased in recent days as Canadian leaders, such as Ontario Premier Doug Ford, look for ways to respond to U.S. President Donald Trump's 50% tariffs on select Canadian goods. "I think it's one of those things emotionally that probably feels good to say to just stick it to them," Smith said. "But, I think I've pretty clearly articulated that when you take an action, you have to expect an equal and opposite, and probably even more forceful reaction." .On Wednesday, Smith outlined what effects she believes interfering with Alberta's oil supply to the U.S. would have, regardless of whether Canada were to cut the flow completely or just charge an export tax. According to her, the U.S. would turn to Venezuela or elsewhere for its oil, impose immediate 50% or 100% export tariffs on natural gas and diesel fuel bound for Canada, and potentially cut industry ties with Canada forever. Conversely, Ontario and Quebec's economies would be brought to a grinding halt if the U.S. turned elsewhere for diesel, and 500,000 Canadian jobs would be lost, mostly in Alberta but also in Quebec and Ontario. "If we cut off our oil entirely, what then?" Smith said. "The same result, but even worse." Smith said that in the event of a complete shutdown, Canadian gas prices would skyrocket, and the U.S. would use its strategic oil reserves to keep prices manageable. "Canada has no way to supply Ontario and Quebec with the oil, natural gas, and fuels that they would need in a timely fashion," Smith said. "The Toronto Stock Exchange would nosedive, along with millions of Canadian investments, particularly our seniors and small and medium and large energy companies across Canada would shudder and lay off their employees, unable to find a market for their product." .Smith said there is no excuse for the U.S.'s current actions under Trump, but the solution is neither to cut nor to tax oil exports, nor to engage in a trade war. "The relationship between the American and Canadian people is far stronger and more resilient than any one president or administration, and the American people are not at all happy right now with the current U.S. tariff policies, especially against their closest friend and neighbour," Smith said. "We need to be wise, patient, careful, and deliberate to overcome the economic attacks our country is facing. So, rather than making threats and promises we know we cannot keep, Canada should focus on what we can control and do." .The premier then outlined a series of actions or goals Canada should take to help combat the effects of the dispute, including finding ways to get more of Alberta's oil to Eastern Canada and additional international markets, breaking down interprovincial trade barriers, and implementing some tax reforms. "My fellow Albertans and Canadian groups, we will win it through being smarter, more strategic, more agile, and using our reputation and relationship with the American people to have these tariffs reversed," Smith said. "That is how we win."

Smith says cutting or taxing oil exports to the US would be a 'disastrous' decision

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