Smith fires back over Ottawa's willingness to use Alberta oil as trade war bargaining chip

Alberta Premier Danielle Smith is firing back over Ottawa's willingness to use Western oil and gas as a bargaining chip in a potential trade war with U.S. President-elect Donald Trump.

Trump has threatened a 25% tariff on Canadian goods unless Canada remedies its border security problems — Smith has taken action to enhance security at Alberta's southern border with the U.S.

On Wednesday, Prime Minister Justin Trudeau held a meeting with Canadian premiers to discuss strategy in a potential trade war. Alberta oil and gas were on the table in terms of bargaining with Tump in a future dispute.

During a press conference, Trudeau didn't rule out using Alberta oil and gas to leverage an outcome for Canada.

"We have made it very clear that everything is on the table as potential responses, but we've also been very very clear that it has to be fair across the country," he said.

Ottawa continues to float the idea of halting energy supplies to the U.S. and imposing export tariffs on Alberta oil and other products to the U.S., said Smith in a statement.

"Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs. Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products."

Smith was the only premier not to sign a joint communique after the meeting.

In 2023, Alberta 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.

"Did you know Canada and the United States are connected by 450,000 kilometres of pipelines?" wrote Smith on X earlier on Wednesday.

"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."