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Energy export issue divides premiers as they talk Trump tariffs

Federal government walks them through border plan, then moves on to retaliatory trade measures
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Ontario Premier Doug Ford arrives for a first ministers meeting in Ottawa on Wednesday, Jan.15, 2025. THE CANADIAN PRESS/Sean Kilpatrick

The country鈥檚 premiers emerged from a key meeting about Canada-U.S. relations in Ottawa on Wednesday with a message of unity and a pledge to stand together, with one exception: Alberta鈥檚 Danielle Smith, who said she cannot support the federal government鈥檚 plan if energy export tariffs could be a part of it.

Prime Minister Justin Trudeau, who chaired the first ministers鈥 meeting, said it was 鈥渉ighly productive.鈥

鈥淲e have a shared sense of purpose, a shared sense of understanding, and a commitment to stand together on a united path forward,鈥 he said.

Saskatchewan Premier Scott Moe, who has long been a vocal critic of Trudeau鈥檚 Liberal government, began Wednesday by echoing Smith鈥檚 concerns that blocking energy exports to the United States would trigger a national unity crisis.

After the meeting, he struck a diplomatic tone.

鈥淐anadians can be thankful their 13 premiers, the prime minister and a few federal ministers are coming together not only to hash out what those differences might be, but to understand where we can come together,鈥 Moe said.

But as the premiers spoke to reporters in Ottawa, Smith, who attended the meeting remotely while on vacation and didn鈥檛 take part in the press conference, took to social media to explain why she refused to sign a joint statement with her colleagues.

鈥淎lberta 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. We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies,鈥 said Smith.

She added that Canada needs to 鈥渃orrect the misguided direction of this country鈥 and focus on developing, upgrading and exporting oil and gas and other resources.

Ontario Premier Doug Ford, chair of the Council of the Federation, said he respects that Smith is concerned with protecting Alberta energy but he believes incoming U.S. president Donald Trump is trying to divide and conquer.

鈥淗e鈥檚 coming full-tilt at Canadians as a whole, and that鈥檚 one thing we have to understand. We need to be united,鈥 Ford said.

Trump has threatened to impose a 25 per cent tariff on all Canadian goods beginning on Jan. 20, inauguration day.

While he initially said the tariffs were being imposed in response to drugs and illegal immigration crossing the shared border, he has since pivoted to citing the United States鈥 trade deficit with Canada.

Senior government officials have previously said Ottawa is looking at imposing retaliatory tariffs on things like American steel, ceramics, plastics and orange juice.

Trudeau said Wednesday he supports the principle of a dollar-for-dollar response to the American tariffs, but said Canada must wait to see what Trump actually does next week before laying out a response.

鈥淲e鈥檒l make sure that it鈥檚 fair across the country, but nothing can be off the table if the U.S. continues to choose to move forward with these punishing tariffs on both Canadians and Americans,鈥 Trudeau said.

He also opened the door to providing federal bailouts for industries or regions that are affected by tariffs.

鈥淲e鈥檝e made the commitment to do everything we can, and I know everyone around the table has agreed to, if their region is less impacted, they鈥檒l do what they can to help out regions that are more impacted,鈥 he said.

Canada is the top supplier of foreign oil to the U.S. and accounts for about one-fifth of its oil supply.

Energy Natural Resources Minister Jonathan Wilkinson, who was in Washington, D.C., on Wednesday, said initial retaliatory tariffs will be targeted.

鈥淚f we have to do more we will look at other things, but the idea of tariffing energy will probably be one of the last things,鈥 he said.

Trudeau and the premiers said they plan to continue making the case to the Trump administration that tariffs will hurt American businesses and industry, too.

鈥淭he question that we ask ourselves first and foremost is, if the new administration chooses to bring in tariffs, what is it that we can do that result in the lifting of those tariffs as quickly as possible?鈥 Trudeau said.





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