Alberta Premier Danielle Smith is offering a masterclass in negotiation tactics for Canada's trade deal makers: don't overreact to every tariff threat coming from U.S. President Donald Trump.
Speaking Monday at The New North America Summit, Smith drew on her two face-to-face meetings with Trump in 2025 to explain his negotiating approach — one she says Canada has fundamentally misunderstood.
The Three-Tiered Strategy
"He always had a plan A, a plan B and plan C, all of which benefited him," Smith explained, describing Trump's negotiating playbook.
"He has his moon shot, but he also has a 'this is pretty good' and then he has an 'I'll settle for this.' I don't think we've understood that he always puts his moon shot out there and then we panic and freak out with ads and overwrought commentary — but that is just a negotiating style that he has."
Smith's assessment cuts through months of anxiety in Canadian political circles over Trump's broad sector-specific tariffs and threats to abandon the Canada-U.S.-Mexico-Agreement (CUSMA) before the critical July 1 renewal deadline. The trade pact, which has kept most North American commerce duty-free for 16 years, now hangs in the balance after Trump said last week he is "not looking to renew" it.
A Win-Win Path Forward
According to the Alberta premier, the path to a mutually beneficial agreement exists — but only if both sides recognize what the other truly needs.
"I think we're now beginning to settle down and realize there is a way for us to get to a win-win but the Americans are never going to agree to a deal where they feel they've lost ground."
Smith also credited a diplomatic reset under new Prime Minister Mark Carney, noting that Canada-U.S. relations have improved compared to the "frayed" relationship between Justin Trudeau and Trump over the past decade.
The GST Sticking Point
One persistent irritant in negotiations, Smith revealed, is Canada's Goods and Services Tax (GST) and value-added tax structures — something American negotiators view with deep suspicion.
"They really, really hate national sales taxes, value-added sales taxes, because they do not have a national sales tax in the United States," she said, suggesting this remains a critical flashpoint in trade discussions.
As Trump's second term continues to reshape North American trade dynamics, Smith's insights offer a sobering reminder: panic may be the enemy of progress at the negotiating table.
This article originally appeared on Global Calgary. For more reporting on Alberta and Canadian news, visit WestNet News.