Canada

Danielle Smith, Doug Ford discuss trade war during Monday phone call

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The impact of new U.S. tariffs on Canadian goods will be quite small for Alberta compared to other provinces, economists say.

Alberta Premier Danielle Smith and Ontario Premier Doug Ford discussed Canada’s ongoing trade war during a Monday phone call.

Ford said during a morning news conference that he and Smith would have a call to discuss what needs to be done to “protect Canadian workers” following the collapse of trade negotiations Friday.

In a statement sent to CTV News, Smith confirmed the pair spoke on Monday.

“I recognize that these tariffs have a disproportionate impact on Ontario businesses, and I’ve offered my support on how we can constructively work together to strengthen the Canadian economy,” Smith said.

“A strong energy sector creates a strong Canada. It can provide the revenue all levels of government will need to support other impacted sectors. That’s why we are committed to accelerating the construction of pipelines, including the Northern Shield pipeline from Alberta to Ontario and the oil pipeline to the West Coast, and other critical export infrastructure.

“As I’ve said in the past, cutting off Alberta energy exports to the U.S. would be extremely harmful to Canadians and is not a viable option.

“Right now, our focus must be on immediate action: supporting affected workers and businesses, dismantling interprovincial trade barriers, strong diplomacy and continuing to grow our export markets.”

Smith says she looks forward to “discussing these constructive strategies” with Prime Minister Mark Carney and Canada’s premiers.

Carney has accused the U.S. of trying to introduce last-minute measures which could have restricted Canada’s ability to do deals with other countries and protect its culture.

On Monday, Carney said Canada will go back to the negotiating table on a trade deal once the United States changes its attitude and stops treating Canada as a subsidiary.

Ford, meanwhile, called Donald Trump a “dictator” and the “king of bankruptcies” after the U.S. president criticized him on social media on Monday afternoon.

Tariffs to impact Alberta less than other provinces: economists

Ford’s province, British Columbia and Quebec will soon feel the pinch of the 50 per cent tariffs on goods originating from those provinces.

But according to University of Calgary economist Trevor Tombe, Alberta will feel a much lower impact from those duties, with less than one per cent of exported goods being impacted if the trade fight continues.

“I estimate half a percent of Alberta exports are affected by these tariffs — far less than what we see in Ontario or British Columbia or Quebec,” Tombe said.

“But Alberta is home to many suppliers to exporters located elsewhere in the country.”

With Alberta feeling a very minimal direct impact, Smith is calling for calm through diplomacy rather than retaliatory measures.

“We have not called names on the president at podiums to be able to get, cheer and laughter.” Smith said on her radio show on the weekend.

Smith said she supports Canada’s decision to withdraw from trade talks last week, but some political observers say she is trying to appease all sides on the trade war fight.

“So, Danielle Smith is a politician as we’ve seen historically (who) is trying to appeal to those who are less affected by the tariffs and worried about what retaliation might mean for other industries,” said Mount Royal University political scientist Lori Williams.

Meanwhile, “those who are being affected by the tariffs and are looking for some kind of relief.”

Former Alberta premier Jason Kenney wants Canada to match the U.S. duties with dollar-for-dollar retaliatory tariffs — an option that remains on the table alongside more measured approaches.

“We’re dealing with a counterparty in President Trump’s administration that is erratic, impulsive, unpredictable,” Kenney said.

Kenney believes both Alberta and Saskatchewan need to rethink a ban on U.S. alcohol, despite the rising rhetoric coming out of the American administration.

“Shifting from bourbon to Alberta rye or… to B.C. wines, it strengthens the Canadian economy at zero cost to us,” Kenney said.

While the new duties target dairy, alcohol and building materials, Alberta’s oil and gas sector remains exempt from any hard-hitting measures.

“The reason that oil and gas is not being tariffed is because the American economy wants oil prices, gas prices at the pump to be lower than higher,” Williams said.

With further U.S. tariffs looming in the new year, Ottawa is poised to announce a slate of retaliatory tariffs on Tuesday.

“We’re in a trade war,” said Jobs and Families Minister Patty Hajdu at an unrelated press conference in Calgary on Monday.

“This is an act of aggression from the United States, and so I think there can be increasing aggressive actions (from Canada).”

The federal government is expected to announce its retaliatory response — including worker support measures — on Tuesday. Prime Minister Mark Carney said those counter-tariffs would take effect Sept. 8.

With files from The Canadian Press