Alberta premier talks about 'tariff-free relationship' with the U.S.

Alberta Premier Danielle Smith said her conversations with U.S. President Donald Trump went well, but the leader's tariff threat has not been averted.

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The premier met with Trump at Mar-a-Lago over the weekend, where she spoke with him about Alberta energy and its benefits for the American economy.

Much of those talks had to do with an incoming 25 per cent tariff that Smith said everyone should be prepared for.

"We've all seen the biggest irritant to the United States are trade deficits, which they believe they have. I don't believe they have a trade deficit when you take out energy," she told reporters on Monday.

"We actually buy more goods and services from the U.S. than they buy from us."

Smith says oil and gas will be "key to a breakthrough" once tariffs come in.

She says Canada needs to maintain a strong relationship with the U.S. and make a case about a mutual benefit on energy.

'Tariff-free relationship'

Smith said her mission south of the border is pitching the argument of a "tariff-free relationship" between Canada and the U.S.

"The bedrock of that tariff-free relationship is energy," she said. "We actually sell discounted oil to the U.S., they upgrade it, $100 billion worth of oil turns into $300 billion worth of value-added product."

When it comes to Canada initiating its own retaliatory tariffs, Smith said it would be unwise to "threaten anything you cannot do."

"I would encourage the minister to look at a map of where Line 5 goes," Smith said.

"Line 5 comes down through Michigan to get to Sarnia, (Ont.), and then that feeds the bulk of supply needed for Ontario and connects with Line 9, which feeds the bulk of the supply needed for Quebec."

Smith said if that line is cut off, it would cut off Ontario and Quebec.

Instead, she wants ministers to look at ways to "practically" respond to Trump's tariff threat, which could include an export tax.

Her efforts, however, have been aimed at avoiding that altogether.

"I feel it would be mutually damaging to have a 25 per cent tariff across the board on U.S. goods coming into Canada. It would harm Canadian citizens at a time when we have an affordability crisis in the same way that a 25 per cent tariff across the board on our goods to the U.S. would harm U.S. citizens.

"I hope cooler heads prevail."

On Sunday, Smith posted images of herself with Trump and Canadian billionaire Kevin O'Leary of Dragon's Den fame.

She spoke of a "friendly and constructive conversation" that focused on how thousands of American jobs are supported by Alberta energy exports.

Trump's tariffs are set to come in when he is sworn in on Jan. 20.