Alberta Premier Danielle Smith is steering a different course than her provincial counterparts as Canada's trade dispute with the United States intensifies, cautioning against retaliatory tariffs even as Prime Minister Mark Carney threatens dollar-for-dollar retaliation beginning after Labour Day.
Speaking during her Saturday radio program, Smith acknowledged the emotional appeal of hitting back against American trade pressure, but warned that retaliation carries real costs for everyday Canadians.
"I know, emotionally, it feels good to retaliate. I get that. But let's remember what happens when we retaliate," Smith said. "When retaliation happens, it means everybody who is buying products from the United States are now going to face upwards to 50 per cent tariffs. And they are talking about that being on steel, on dairy, on appliances, on agriculture equipment."
The federal government pulled out of trade negotiations with Washington late Friday evening after failing to prevent the U.S. from imposing 50-per-cent tariffs on approximately $20 billion worth of Canadian goods. Carney's counter-threat: matching tariffs on American imports, starting after the long weekend.
A Lone Voice of Caution
Smith's position puts her at odds with most of her fellow premiers, who have rallied behind Carney's aggressive stance. However, her government has consistently resisted calls for tough retaliation. Her chief of staff called countertariffs a "knee-jerk" reaction that would primarily harm Canadian consumers and businesses.
This isn't Smith's first rodeo on the tariff debate. She has long opposed retaliatory measures and previously rejected suggestions that Alberta weaponize its energy exports against U.S. pressure—a move she argued would cripple Alberta's economy far more than it would hurt American competitors.
Even Alberta's early participation in removing American alcohol from store shelves during the initial trade war escalation was short-lived. The province, alongside Saskatchewan, reversed that policy more than a year ago.
Supporting the Walkaway, Not the Counterattack
Smith did endorse Carney's decision to step away from the negotiating table, calling some U.S. demands "untenable" and too costly for Canada to accept. She also praised the federal government's decision to delay any retaliatory tariffs until after Labour Day, framing the delay as an olive branch to Washington.
"That's the Prime Minister saying: 'Come on, guys, let's see if we can figure this out over the next two weeks.'"
Her political foundation sits firmly in rural Alberta—among farmers, ranchers, and energy sector workers—and that constituency is front and centre in her thinking. Smith expressed particular concern about how agricultural equipment tariffs would impact food production.
"We shouldn't be cheering if our farmers have to pay 50 per cent more for all the equipment that they need to produce our food," Smith said. "That is not a success."
As the two-week window before potential Canadian retaliation ticks down, Smith's cautionary stance represents a significant philosophical divide within Canadian leadership on how best to navigate the escalating trade conflict.
This article is based on reporting from the Globe and Mail. Read the original story.