Alberta Premier Danielle Smith says Trump's border concerns are valid as tariffs loom

Alberta Premier Danielle Smith says Donald Trump’s concerns about the border are valid, as the president-elect threatens sweeping tariffs on Canadian goods.

Trump announced Monday that on his first day in office he would impose a 25 per cent tariff on all products from Mexico and Canada. He said the tariffs would remain in place until the two countries clamp down on drugs and migrants crossing the border illegally.

In a statement Tuesday, Smith called on the federal government to work with the incoming administration to resolve these issues immediately to avoid “any unnecessary tariffs on Canadian exports to the U.S.”

“Fortunately, the vast majority of Alberta’s energy exports to the U.S. are delivered through secure and safe pipelines which do not in any way contribute to these illegal activities at the border,” Smith said in the statement.

“As the largest exporter of oil and gas to the U.S., we look forward to working with the new administration to strengthen energy security for both the U.S. and Canada.”

'Very concerned'

Deborah Yedlin, president and CEO of the Calgary Chamber of Commerce, said a 25 per cent tariff could cripple the economy.

“Very concerned about what this means for the Canadian economy. What it means for our terms of trade.”

Yedlin said the energy industry is of particular concern in Alberta.

Trade with the United States made up 89 per cent of the province’s exports in 2023, according to the Government of Alberta.

Last year alone, Alberta exported $156.3 billion south to the U.S.

Crude petroleum made up the majority of those exports, totalling $113.4 billion – 73 per cent.

“We can not afford to deal with a 25 per cent tariff,” she said. “It’s very disconcerting.”

Yedlin said recent policies from the federal government aren’t helping the sector during a time of negotiations, citing the emissions cap, Bill C59 and clean electricity regulations.

“All of that taken together is not going to be a net benefit for the Canadian economy and it’s going to be a challenging for the energy sector and Calgary,” she said.

“Anytime there’s uncertainty, money stays on the sideline and doesn’t get invested into what could make our economy more productive and healthy and grow.”

She said that the impacts will be felt across the board in terms of small or big-scale businesses and will ultimately cost consumers.

“It’s an impact in terms of, costs will go up, our dollar will go down, it was down (Monday), so our terms of trade decrease, so everything is more expensive. What do we have to pay for goods? What do we have to pay for services? So that means we don’t have as much disposable income if costs go up.”

Lisa Baiton, the president and CEO of the Canadian Association of Petroleum Producers (CAPP), said Canada needs to do everything in its power to preserve its energy partnership with the United States.

“A 25 per cent tariff on oil and natural gas would likely result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security,” Baiton said in an emailed statement.

“However, as Canadians, we need to be eyes-wide-open on the president-elect’s promise for across-the-board tariffs. It is time to stop dithering around with domestic policy that kills our biggest GDP generators and job creators, like the emissions cap, and move with alacrity to support our most productive industries.”

Alberta Beef Producers said it is closely monitoring the possibility of tariffs in the new year.

“As one of the largest exporters of beef to the U.S., Alberta plays a crucial role in the North American market,” ABP said in a statement Tuesday.

“In light of this, ABP is actively engaging with key stakeholders to ensure the best possible outcome for the industry.”

ABP said it is pleased to see the federal and provincial governments coming together to discuss the potential effects of tariffs.

"We need a team approach to address the potential for tariffs,” said ABP general manager Brad Dubeau.

“By working together, we can effectively navigate this challenging situation as we prioritize and advocate for ongoing free and fair trade between Canada and the U.S."

Trudeau meeting with premiers

Canada’s premiers will be meeting with Prime Minister Justin Trudeau this week to discuss the proposed tariffs.

Trudeau said he spoke with Trump on Monday night, describing it as a “good call.”

"We obviously talked about laying out the facts, talking about how the intense and effective connections between our two countries flow back and forth. We talked about some of the challenges that we can work on together," Trudeau told reporters on Tuesday.

"This is something that we can do. Laying out the facts, moving forward in constructive ways. This is a relationship that we know takes a certain amount of working on and that's what we'll do.”

Nationally, the U.S. is Canada’s largest foreign customer, accounting for $595 billion in 2023 – 89 per cent of total exports – according to a report from ATB Economics.

With files from CTV News National Correspondent Rachel Aiello