Friday, January 24, 2025

Danielle Smith's strategy for avoiding tariff war

On January 20, Alberta Premier Denielle Smith unveiled her recommended strategy for avoiding a trade war with the United States. 


Danielle Smith in 2011. Photo by Dave Cournoyer. CC BY-SA 2/0, Wikimedia Commons.

Premier Danielle Smith: Update on potential US tariffs | Government of Alberta (news release): 

January 20, 2025 - Alberta Premier Danielle Smith issued the following statement welcoming the U.S. tariff reprieve and calling for policy action:

"Alberta is pleased to see that today, President Donald Trump has decided not to impose tariffs on Canadian goods until the matter is further studied.

"We appreciate the implicit recognition that this is a complex and sensitive issue with serious implications for American and Canadian workers, businesses, and consumers, given the integration of our markets, as well as our essential energy and security partnership.

"Avoiding tariffs will preserve hundreds of thousands of jobs in every sector in Canada and the United States. For example, refusing to impose tariffs on Canadian energy preserves the viability of dozens of American refineries and facilities that process Alberta crude, as well as the jobs of tens of thousands of Americans they employ.

"Despite today’s promising news, the threat of U.S. tariffs remains very real. As a country, we must take the following immediate steps to strengthen and protect our economic and security partnership with the United States, and to avoid the future imposition of tariffs:

  1. Focus on diplomacy and refrain from renewed talk of retaliatory measures, such as imposing tariffs on exports or cutting off energy supplies to the United States. Having spoken to the President, as well as dozens of governors, senators, members of Congress, and allies of the new administration, I am convinced that strong, consistent diplomacy and working in good faith on shared priorities is the path to a positive resolution with our American allies. The worst possible response to today’s news would be for the federal government or other provincial premiers to declare 'victory' or escalate tensions by needlessly threatening the United States.
  2. Negotiate ways to increase what Canadians and Americans buy from each other. For example, the United States should consider buying more oil, lumber, and agricultural products from Canada, while Canada should consider buying more gas turbines and military equipment from the United States, as well as the IT equipment needed to strengthen our AI data center sector. Finding ways to increase trade in both directions is essential to achieving a win-win situation for both countries.
  3. Redouble border security efforts. Over the next month, all border provinces should, either alone or in partnership with the federal government, deploy the necessary resources to protect our shared border from drugs and illegal migration.
  4. Announce a significant acceleration towards achieving the NATO target of 2% of Canadian GDP. This is clearly a shared priority that benefits both our nations. There is no excuse for continuing to lag behind.
  5. Addressing immigration channels and known loopholes that allow people hostile to Canada and the United States to enter our country, and restoring immigration levels and rules that existed when Stephen Harper was Prime Minister.
  6. Immediately repeal all federal anti-energy policies (production cap, Clean Electricity Regulations, Impact Assessment Act [Bill C-69]) and expedite preliminary approval of the Northern Gateway and Energy East projects."

https://www.alberta.ca/release.cfm?xID=92666366C2059-0E29-5BFF-B27038077A9ADAF3

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