Alberta keeping sanctions in place until threat of U.S. tariffs ends: Smith

Yahoo

08-03-2025

EDMONTON — Premier Danielle Smith says Alberta's trade sanctions on the United States will stay in place until U.S. President Donald Trump drops the threat of tariffs.
In a social media post Friday, Smith said the province's measures, which include a ban on future purchases of American booze and video lottery terminals, will remain despite a partial but vague pause from Trump.
"Yesterday's presidential executive order mandating the pause is unclear as to which goods it actually applies to and what legal forms and requirements will be needed to qualify," Smith said.
"The government of Alberta will therefore be moving forward with our tariff response until these questions have been adequately dealt with and the continued threats and unilateral imposition of tariffs in contravention of the (Canada-U.S.-Mexico Agreement) has stopped."
She is also calling on Trump to abide by the trade agreement until Canada holds its next federal election. It's expected to take place in April but won't be called until after the federal Liberals elect a new leader Sunday.
Smith said doing so would respect Canada's democratic process, calm markets and "demonstrate a good faith effort to respect the agreement negotiated by this very president during his first term, while a new agreement is being negotiated between our countries that addresses outstanding trade irritants."
Besides cutting off U.S. liquor and VLTs, the Alberta government is also looking to prioritize purchases from Canadian companies or companies from countries that don't violate trade agreements.
Alberta joined other provinces and the federal government in pushing ahead with trade sanctions despite Thursday's partial rollback from the White House.
On Tuesday, Trump imposed sweeping 25 per cent tariffs on Canadian goods, along with a 10 per cent levy on energy products, only to announce carve outs on a range of goods two days later.
The executive order delays the tariffs on goods that meet rules-of-origin requirements under the Canada-U.S.-Mexico Agreement, often referred to as CUSMA, and lowers levies on potash to 10 per cent, until April 2.
Ottawa responded by suspending its second wave of retaliatory tariffs that were to take effect in three weeks. Canada's first round of retaliatory tariffs on $30 billion in American goods remained in effect.
Smith said the back-and-forth this week "continues to confuse Canadians and Americans alike" and has only led to volatile market shifts and investment uncertainty.
At a press conference earlier Friday, Smith said some businesses could qualify for CUSMA exceptions — it's just a matter of filling out the paperwork. She said she also suspects a "vast majority" of Alberta energy products can be shipped into the U.S. tariff-free.
"When the U.S. administration says that 62 per cent of Canadian goods have not been compliant with the (trade agreement), it seems to me that's a paperwork issue."
Smith has said Alberta needs to take action, but she won't curtail or impose counter-tariffs on oil and gas shipments, as it could escalate retribution from the U.S. and hurt Canadians.
While the province is pushing its agencies, school boards, Crown corporations and municipalities not to buy goods and services from American suppliers, Alberta Municipalities president Tyler Gandam said many municipalities already have been.
"There isn't going to be much of a change," he said, adding some will need to take a closer look at whether they can switch to local suppliers and service providers where possible.
Alberta estimates $292 million in U.S. liquor products were sold in the province in 2023-24.
The province also buys about $100 million worth of VLTs each year, Smith said.
Her government has also pledged to help retailers voluntarily label Canadian and Albertan products and to reach free trade and labour mobility agreements with other provinces.
This report by The Canadian Press was first published March 7, 2025.
Lisa Johnson and Jack Farrell, The Canadian Press