Trump’s trade war finds unlikely ally in Alberta’s Danielle Smith
5 Min Read
As tensions mount over US-Canada trade talks, Alberta's premier urges federal leaders to restore investor confidence, roll back damaging laws, and address rising separatist sentiment.
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Premier of Alberta Danielle Smith, accompanied by other Council of the Federation members, speaks to reporters at the Mayflower Hotel in Washington, Feb. 12, 2025 (AP)
While many Canadians have reacted sharply to US President Donald Trump’s aggressive trade stance and offhand remarks about annexing Canada, Alberta Premier Danielle Smith offers a markedly different tone, one of pragmatism, partnership, and restraint in an interview for Politico Magazine.
“We have a longstanding relationship with the Americans that goes back over 100 years, and it’s going to last 100 years or more,” Smith told Politico Magazine, underscoring Alberta’s deep economic ties to the United States. As leader of a resource-rich province where oil and gas dominate the economy, Smith's outlook reflects a region that remains largely free from US trade restrictions and seeks to maintain open cross-border flows.
Despite her openness to working with Trump-aligned figures, Smith acknowledged unease over the looming August 1 deadline to finalize a revised Canada-US trade and security agreement. “You just never know if those are posturing positions for negotiations or if that’s a demonstration that things are not going as smoothly as we’d all hoped,” she said, noting the unpredictability of Trump’s tactics.
Smith, a Conservative with regular contact with Trump administration officials, views tariffs not as ideological instruments but as bargaining chips. “I read his book, The Art of the Deal, and I read Robert Lighthizer’s book as well,” she said, adding that Trump regards tariffs as revenue tools aimed at strengthening domestic industry. Yet, she sees “space for compromise” and emphasized Alberta’s favorable position in areas like energy and agriculture, sectors still largely untouched by protectionist policies.
Friction with Ottawa and federal policies
Smith has long sparred with federal leadership in Ottawa, clashing frequently with former Prime Minister Justin Trudeau. That tension remains under Prime Minister Mark Carney’s administration, despite what Smith described as Carney’s “affable, amiable” demeanor and historic ties to both Alberta and conservative politics. She warned, however, that Ottawa's approach to trade and energy continues to alienate Albertans.
“They’ve broken down the foundational relationship with our province, and we’re just asking for them to repair it,” Smith said, pointing to the cancellation of major pipeline projects such as Energy East, Northern Gateway, and Keystone XL. She claimed the decisions cost Alberta over C$55 billion in potential revenue and a daily production shortfall of 2.5 million barrels.
'Enough is Enough'
Smith is particularly critical of what she sees as Ottawa's failure to uphold its constitutional obligation to enable interprovincial trade. “Enough is enough,” she said, arguing that federal environmental regulations and investment restrictions have hollowed out Alberta’s economic potential.
She also expressed frustration over Ontario and Ottawa’s “emotional” reactions to Trump’s trade threats. “Different people respond in different ways,” Smith remarked. “You don’t allow for temporary frustrations and irritations to damage the relationship permanently.”
Beyond the immediate drama of tariffs and deadlines, Smith emphasized the long-term need for stability. “Right now we don’t have business certainty and that’s causing a lot of concern about investment,” she said, urging federal officials to prioritize a renegotiation of the US-Mexico-Canada Agreement (USMCA) before its 2026 expiration.
She credited Canada’s decision to shelve the Digital Services Tax as a gesture of goodwill and hoped it would help ease tensions with Washington. “I think everyone is still holding out some hope that will happen,” she added.
On sovereignty and separatism
Although Smith has faced pressure from Alberta’s growing separatist movement, she dismissed the idea of joining the United States as a serious political option. “Alberta hasn’t been treated very well by Washington, either,” she pointed out, recalling President Joe Biden’s cancellation of Keystone XL as a stinging setback. “Other than the general calls to join as a 51st state,” she emphasized, “there has been no direct push” from Trump allies or MAGA figures for Alberta to pursue independence.
Still, Smith didn’t downplay the growing discontent within her province. “I take it seriously,” she said of separatist sentiment, insisting that federal leaders must address the root causes if they hope to reverse it. Repealing what she described as “nine damaging laws” that have stifled Alberta’s economy, she said, could begin that process.
At a recent summer gathering with Carney and other premiers, Smith outlined a clear vision: reduce federal overreach, restore economic certainty, and ensure Alberta has the autonomy to build its own future.
“Albertans just want to be respected,” she stressed. “We want to be able to develop our economy. We want to be able to build pipelines north, south, east, and west, and we hope that we can work with both the administrations in Ottawa and Washington to do that. "
