Alberta retaliates against Trump tariffs

The Alberta government has announced a series of trade and procurement measures in response to U.S. tariffs imposed by President Donald Trump, which include a 25 per cent tariff on all Canadian goods and a 10 per cent tariff on Canadian energy exports.

On March 5, Premier Danielle Smith called the tariffs an “unjustifiable economic attack”, stating that Alberta’s response would be measured but firm.

“These non-tariff actions are measured, proportionate and put an emphasis on defending Alberta and Canada against these economically destructive tariffs imposed by U.S. President Donald Trump, while breaking down restrictive provincial trade barriers so we can fast-track nation-building resource projects and allow for the unrestricted movement of goods, services and labour across the country,” Smith said.

One of Alberta’s primary countermeasures is shifting procurement policies to ensure that government agencies, school boards, Crown corporations, and municipalities prioritize purchasing goods and services from Alberta companies, Canadian companies, or nations with free trade agreements that Canada upholds.

In addition, the Alberta Gaming, Liquor and Cannabis (AGLC) has been directed to suspend purchases of U.S.-made alcohol and video lottery terminals (VLTs) until further notice.

“We are committed to putting Canadian businesses first,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction, “By suspending the purchase of U.S.-produced alcohol, slot machines and VLTs, we are ensuring that Alberta and Canadian brands take priority in our restaurants, bars and retail stores. We will continue to take bold steps to support local industries and strengthen our economy.”

The province will also assist local grocers and retailers in identifying and labelling Canadian-made products in their stores. A “Buy Alberta” campaign will launch in the coming weeks, led by Minister of Agriculture and Irrigation RJ Sigurdson, to encourage Albertans to support local farmers, ranchers, and processors.

“Alberta’s agriculture producers and processors are the best in the world,” Sigurdson said, “Although these U.S. tariffs are incredibly concerning, this ‘Buy Alberta’ campaign will put a spotlight on Alberta’s farmers, ranchers and agri-food businesses and support Albertans in choosing goods from right here at home.”

With the U.S. placing tariffs on Canadian energy, Alberta is turning its focus toward developing new export markets. This includes expanding pipeline infrastructure to ship oil and gas to Asia and Europe instead of relying on U.S. demand.

Alberta is also pushing for interprovincial trade agreements to eliminate barriers between provinces, allowing for more open trade of goods, services, and labour across Canada.

“While no one wins in a tariff war, this situation underscores the need to develop Canada’s trade infrastructure and the diversification of our trading partners and could be the catalyst to unlocking Canada’s true potential,” said Matt Jones, Minister of Jobs, Economy and Trade, “As we look at how best to support Albertans and our businesses, we must also work to reduce internal trade and labour mobility barriers while expanding markets for Alberta energy, agricultural and manufactured products into Europe, Asia, the Americas and beyond.”

Despite Alberta’s move to lessen its economic reliance on the U.S., the province will continue engaging with U.S. officials and industry leaders in hopes of reversing the tariffs.

The U.S. remains Alberta’s largest trading partner, accounting for 88.7 per cent of the province’s exports in 2024, with energy products making up 82.2 per cent of those exports.

“These tariffs will hurt the American people, driving up costs for fuel, food, vehicles, housing and many other products,” Smith said, “They will also cost hundreds of thousands of American and Canadian jobs.”

Alberta’s government will continue to monitor the trade situation, while working to expand domestic trade and international market access for Alberta industries.

Premier Danielle Smith issued the following statement to provide an update on Alberta’s response to U.S. tariffs on March 7.

“It was reported yesterday that U.S. President Donald Trump has paused his threatened tariffs on Canadian goods until the commencement of so-called “reciprocal tariffs” scheduled to be placed on goods imported into the United States from all countries on April 2. The President is also now threatening to unilaterally place additional tariffs on other Canadian goods.

“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.

“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-United States-Mexico Agreement (CUSMA) has stopped.

“The repeated pausing and unpausing of U.S. tariffs is causing great investment uncertainty and market volatility right across North America, and continues to confuse Canadians and Americans alike.

“Given the Canadian federal election is likely to be called within weeks, we ask the United States to abide by the terms of the CUSMA while the election is held, and then commence negotiations shortly thereafter with whomever ends up becoming Canada’s new Prime Minister.

“Doing so would not only show respect for the democratic process of a long-time military ally and trading partner, but would also calm markets, de-escalate tensions 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,” said Smith.