The premier of Canada’s oil-rich province of Alberta said Monday she would not support any move to stop energy shipments to the United States as a way to combat U.S. President-elect Donald Trump’s threats to impose 25% tariffs on Canadian products.
Danielle Smith addressed a news conference in Florida after a weekend visit with Trump at his Mar-a-Lago resort as a guest of Canadian businessman and television personality Kevin O’Leary.
“Oil and gas are owned by the provinces, principally Alberta, and we won’t stand for that,” she said. “You should never, ever threaten something you cannot do.”
Trump has also said he will use economic coercion to pressure Canada to become the nation’s 51st state, and he continues to erroneously cast the U.S. trade deficit with Canada — a natural resource-rich nation that provides the U.S. with commodities like oil — as a subsidy.
Trump said the U.S doesn’t need anything from Canada, including oil.
Almost a quarter of the oil the U.S. consumes every day is from Canada, with Alberta exporting 4.3 million barrels a day to the U.S. According to the U.S. Energy Information Administration, the U.S. consumes about 20 million barrels a day, while domestically producing about 13.2 million barrels a day.
Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.
Over the weekend, Canadian Foreign Affairs Minister Melanie Joly said she hasn’t ruled out an energy embargo in response to Trump’s tariff threat.
But Smith said Monday that cutting off pipeline supplies through Michigan would choke key supply to Ontario and Quebec.
“We should talk about things that we actually can do, as opposed to empty threats,” said Smith, adding that she has seen no indications that Trump will not proceed with his tariffs threats, which will hurt both the Canadian economy and U.S. consumers.
“We’re a good partner,” Smith said. “We buy a lot of goods from the United States, more than any other jurisdiction. We should maintain this tariff-free relationship for the benefit of both of us.”
Canadian officials have said Canada is considering imposing retaliatory tariffs on American orange juice, toilets and some steel products if Trump follows through with his tariffs threat.
Smith also said Prime Minister Justin Trudeau’s decision to resign, setting up a Liberal leadership race and probable federation election this spring, has hindered Canada’s ability to negotiate with Trump.
“I’m very concerned about a leadership vacuum,” she said. “That’s why I’ve been calling for an immediate election. We need somebody at the table who is able to engage with the administration saying you’ve got a four-year mandate, I’ve got a four-year mandate. Let’s deal.”
Smith will be attending Trump’s inauguration next week. She has been on a diplomatic offensive of late, meeting with U.S. elected officials and appearing on news media south of the border.