Smith Warns Tariff on Alberta Oil Exports Would Devastate Canada's Economy

Alberta Premier Danielle Smith is warning that slapping a tax on the province's oil exports to the U.S. would be disastrous for Canada and lead to massive job losses, business closures, and economic devastation.

The proposed tariff, which would hit Alberta's four million barrels per day of oil exports to the U.S., would likely prompt an immediate retaliatory measure from Washington, with a 50-100% tariff on Canadian oil and natural gas exports to Ontario and Quebec.

Smith argued that this would 'bring the economies of Ontario and Quebec to a grinding halt' and result in Canada losing its largest customer, the U.S., forever. She noted that if Canadian oil becomes too costly, U.S. refineries will turn to other sources, such as from Venezuela.

Instead of escalating trade tensions, Smith suggested focusing on measures to support businesses, such as relief packages and tax reforms. Alberta is set to explore financial lifelines for businesses, following similar moves by Prime Minister Mark Carney's government.