Danielle Smith: “We must prepare for the arrival of tariffs”

Alberta Premier Danielle Smith says Canada needs to face the prospect of new U.S. President-elect Donald Trump moving forward with plans to impose tariffs 25% to Canadian exports.

I think we need to prepare for the arrival of tariffsshe said Monday morning, as she took stock of her double meeting this weekend with Donald Trump in Florida.

Danielle Smith says she thinks Donald Trump would seek to carry out his threat of a trade war because the United States believes it has a trade deficit with Canada: “It irritates them, although I don’t really believe that ‘they are in deficit in their trade [avec le Canada]. »

According to her, if we exclude energy, Canada buys many more goods and services from the United States than this country does. In this regard, she cites a report from the National Bank, which shows that Canada’s trade deficit with its southern neighbor amounts to $58 billion, not taking into account energy exports.

“I would be happy to make this National Bank report available to anyone who wishes,” she adds.

A mutually damaging measure

Alberta oil represents Canada’s largest export to the United States. Donald Trump’s threat to impose tariffs on Canadian exports had the effect of a cold shower in the province.

In the process, the Alberta government announced the creation of a squad to strengthen security at the border with Montana, in an attempt to respond to Donald Trump’s concerns about illegal immigration and drug trafficking.

Thanks to the interpersonal skills of the Canadian businessman Kevin O’Learyknown in particular for having participated in the shows Dragon’s Den et Shark TankDanielle Smith met in person with the new president-elect Saturday and Sunday at Mar-a-Lago.

She did not receive a guarantee from the latter as to whether energy exports to the United States would be exempt or not. She even believes that everything indicates, for the moment, that Donald Trump is committed to his plan for customs tariffs.

I understood from reading the newspapers that there were a hundred decrees coming. I saw nothing to suggest that he would change course.

The Alberta Prime Minister wants to be clear: the implementation of such customs tariffs would harm Canadian citizens, in the same way that 25% customs duties on all Canadian products destined for the United States would harm American citizens, some more than others.

Some states, whose refineries – we have 50 – depend on Canadian oil, will experience the largest increase in gasoline prices she emphasizes.

She believes that since the goal of the incoming Trump administration is to keep energy costs low, a cool head must prevail.

Beware of overbidding

Danielle Smith believes that Canada must maintain dialogue with its American neighbor, arguing that it is a reliable trading partner, who buys more goods and services from the United States than any other country.

Although she affirms that the country will have to make a decision in the face of the American threat, she says she is not in favor of outbidding what would constitute possible retaliatory measures by Canada.

Any form of tariff retaliation harms Canadians. Let’s be frank, if we apply across-the-board 25% tariffs on American products, it increases the cost of all products for Canadians.

To avoid any boomerang effect of possible retaliatory measures, she believes that Canada must be very thoughtful on how to do this: “And that will be part of the conversation, I think, on January 15, when we all meet as prime ministers. »

In this regard, the Prime Minister affirms that the American economy is 10 times larger than that of Canada, adding that the amount of exports from Canada to the United States represents a small share of the overall economy of this country while it constitutes a much larger part of the Canadian economy.

It is therefore we who would suffer the consequences of a prolonged trade and tariff war. So we have to try to find a way to reach a resolution. And I think this will have to be done seriously once the inauguration takes place on January 20.

Our job is to work overtime to make sure we can make the case for waivers.

Regarding the declaration by the Minister of Foreign Affairs, Mélanie Joly, according to which “everything” was on the table” regarding possibly restricting energy exports to the United States, Danielle Smith estimated that such an idea would cause a crisis of national unitywhich, according to her, is not acceptable.

She also deplored the fact that elections had not been called by Ottawa, to have someone at the helm of the Government of Canada, since the announcement of Justin Trudeau’s resignation.

Danielle Smith will attend Donald Trump’s inauguration next week.