Alberta Premier's Cautionary Approach to Trade War Contrasts with Former Leader's Aggressive Stance

Alberta Premier Danielle Smith is cautioning against further escalation of the trade war between Canada and the United States, while former Premier Jason Kenney advocates for keeping oil and gas exports as a pressure tool. The disagreement comes ahead of Canada's planned imposition of counter-tariffs on American products worth 27.6 billion Canadian dollars starting September 8.

Smith believes expanding the tariff confrontation will harm businesses, workers, and consumers in both countries, and emphasizes that the priority should be to bring Washington and Ottawa back to the negotiating table. In contrast, Kenney thinks Canada should not prematurely rule out its strongest economic cards, warning that publicly announcing oil and gas are off the table reduces Ottawa's ability to pressure the American administration.

Kenney suggests imposing taxes on some exports as an option if the Trump administration escalates the trade war, noting that increased costs of goods like fuel and potash could create direct political pressure within states that Republicans rely on electorally. However, Smith rejects the idea of using Alberta's oil and gas exports as a weapon in the trade war, considering it would harm the province's economy before achieving the desired damage on the American side.