On the cusp of U.S. President-elect Donald Trump's inauguration and the potential imposition of harsh tariffs against Canada, Alberta Premier Danielle Smith is again calling for reason.
"Did you know Canada and the United States are connected by 450,000 kilometres of pipelines?" she wrote on X.
"That’s enough to circle the earth 11 times. There are over 500 operating refineries and petrochemical plants in the United States that create value-added products — with over 70% depending solely on raw crude oil from Canada."
Smith added, "This is a clear reminder that it’s time to set politics aside and avoid tariffs that could significantly hurt not just the Canadian economy, but the American economy as well."
Some say Smith has taken the lead in Canada-U.S. relations in the absence of Justin Trudeau and a functioning Canadian government.
She recently spoke with Trump at Mar-a-Lago.
Alberta has much to lose if a trade war breaks out.
In 2023, the province exported approximately C$122 billion worth of crude oil to the U.S. In 2024 it was around C$124 billion.
Canadian crude oil exports to the U.S. reached a record high of 4.3 million barrels per day in July 2024.
The imposition of tariffs could lead to a considerable contraction in Canada's GDP, says the Canadian Chamber of Commerce.
Estimates suggest a potential decrease of around 2.6% annually, which equates to roughly a $2,000 per capita hit, potentially pushing the Canadian economy into a recession by mid-2025 due to reduced demand for Canadian exports in the U.S., which is Canada's largest trading partner, accounting for about 75% of its exports.