The stakes are climbing in the Canada-U.S. trade standoff, and former Alberta Premier Jason Kenney is suggesting the province has a powerful card to play: its energy resources.
Speaking on CBC Radio's Calgary Eyeopener Tuesday morning, Kenney argued that Alberta should consider imposing export taxes on oil, gas, and other critical resources bound for the United States. The move, he said, could serve as a strategic lever against President Donald Trump without causing economic harm to Canada itself.
"We need to be mindful of where we have the greatest leverage, not to play that card now or not to recklessly threaten things, but quietly to remind them that there are some very damaging ways that we could affect the American economy without negatively affecting our own," Kenney said.
A Province Divided on Strategy
The comments put Kenney at odds with current Alberta Premier Danielle Smith, who has flatly rejected the idea of restricting energy exports. In a statement Monday, Smith said cutting shipments to the U.S. "would be extremely harmful to Canadians and is not a viable option."
The disagreement reflects broader tensions over how aggressively Canada—and Alberta specifically—should respond to Trump's escalating tariff threats. On Friday, negotiations between Ottawa and Washington collapsed, prompting Trump to impose a 50 per cent tariff on $28 billion worth of Canadian goods. Prime Minister Mark Carney responded Tuesday with dollar-for-dollar counter-tariffs of his own.
Oil as Economic Ammunition
Kenney's logic carries weight in Alberta's corridors of power: more than two-thirds of the province's oil flows south across the border, making energy a genuine economic pressure point. A modest export tax, Kenney suggested, could "remind the Trump administration that what they're undertaking is ultimately counterproductive" without triggering the kind of economic pain that an outright export ban would inflict on Canadian workers and businesses.
Beyond energy, Kenney also called on Alberta and Saskatchewan to join other provinces in restricting U.S. alcohol imports—a retaliatory measure Smith herself has rejected as unnecessary.
Building Common Ground Amid Division
Interestingly, Kenney's trade war commentary arrives alongside news that he and former NDP Premier Rachel Notley are joining forces on a different front entirely. The Canadian Chamber of Commerce announced Tuesday that the longtime political rivals are co-chairing a campaign to demonstrate that Alberta's prosperity depends on remaining part of Canada—a direct rebuttal to growing separatist sentiment in the province.
The partnership is noteworthy given that Kenney's United Conservative Party defeated Notley's NDP government in 2019. Yet both recognize that national unity matters, particularly as trade tensions with the U.S. mount and Alberta's place in Confederation comes under scrutiny.
As the trade war intensifies, Alberta faces a critical choice: should it deploy its most valuable commodity as a negotiating weapon, or maintain existing export relationships while hoping federal leadership finds diplomatic solutions? Kenney's position suggests that having leverage and using it are two different things—but the message sent to Washington may matter most of all.
This article is based on reporting from CBC Edmonton. Read the original story at CBC News.