Former Alberta Premier Jason Kenney is escalating calls for the province to take a harder line in the intensifying trade war with the United States, suggesting that energy export taxes could serve as a powerful negotiating tool against President Donald Trump.
Speaking on CBC Radio's Calgary Eyeopener Tuesday morning, Kenney argued that while he doesn't support cutting energy exports outright, a strategically applied tax on Alberta's oil, gas, and potash could send a message to Washington without harming Canadian economic interests.
A Calculated Pressure Play
"I think it needs to be telegraphed that if he does something really reckless in further escalating this, and in ways that are potentially existentially damaging to the Canadian economy, that we do have stronger ways of defending ourselves," Kenney said. "Such as a prospective export tax on some of our critical exports to the United States on which they rely, including oil, gas and potash."
The former UCP leader emphasized that Alberta shouldn't play this card recklessly, but rather use it as a quiet reminder to Trump's administration that aggressive trade policies carry economic consequences both ways.
The stakes are significant: more than two-thirds of Alberta's oil is exported south of the border, making energy one of Canada's most potent economic leverage points in any trade negotiation.
Provincial Leadership at Odds
Kenney's comments reveal a divide with current Alberta Premier Danielle Smith, who has firmly rejected energy export restrictions. In a written statement Monday, Smith said cutting exports "would be extremely harmful to Canadians and is not a viable option."
Smith has also resisted joining other provinces in restricting U.S. alcohol imports, arguing on her provincial radio show Saturday that the federal government should be cautious about retaliatory tariffs.
Trade War Heating Up
The escalating tensions come after negotiations between Canada and the U.S. collapsed last Friday. Trump responded with 50 per cent tariffs on $28 billion worth of Canadian goods, while Prime Minister Mark Carney announced dollar-for-dollar counter-tariffs on Tuesday.
Kenney suggested that Alberta and Saskatchewan should also join other provinces in restricting U.S. alcohol sales—a move he noted has apparently registered at the White House.
Putting Differences Aside for National Unity
In a notable shift, Kenney's push for stronger trade tactics comes as he teams up with former Alberta Premier Rachel Notley—his former political opponent—to co-chair a Canadian Chamber of Commerce campaign arguing that Alberta's prosperity depends on remaining part of Canada.
The pair will work together to counter separatist sentiment in the province, demonstrating that economic growth and stability are best achieved within the federation. Kenney's UCP government defeated Notley's NDP in 2019, making the partnership an unusual but significant statement about provincial unity amid federal tensions.
This story is based on reporting from CBC Calgary. For the full original reporting, visit CBC News.